Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
17 September 2012
CONTENTS
Indicates a dynamic link to the online data
Contents
CONTENTS .......................................................................................................................................... 2
Introduction ......................................................................................................................................... 14
Pan Asia average for monthly Consumer Spending in 2008-2011 .............................................. 14
Monthly Consumer Spending forecast for 2013-2018.................................................................. 15
Asia-Pacific Fashion ........................................................................................................................ 17
Korean Fashion ............................................................................................................................... 17
Objectives........................................................................................................................................ 18
Criteria ............................................................................................................................................. 18
1.
Parameters ...................................................................................................................................... 20
2.
Start-up Costs, Initial Investment and Product Launch Balance sheet ...................................... 104
Inventory Costs .......................................................................................................................... 104
Brand Store Start-up Costs ........................................................................................................ 105
Independent Store Start-up Costs ............................................................................................. 106
Brand In-Store Start-up Costs.................................................................................................... 107
Distributor / Exclusive Wholesaler Sign-up Costs ...................................................................... 108
Start Times Weeks: Brand Store ............................................................................................... 109
Start Times Weeks: Independent Store ..................................................................................... 110
Start Times Weeks: Distributor / Exclusive Wholesaler ............................................................. 111
Economies of Scale with multiple Stores ................................................................................... 112
Cash Flow, Profit & Loss, Balance Sheet, Project Financial Analysis ........................................... 113
12 Months Cash Flow Analysis .................................................................................................. 113
First 12 months and First 3 years Profit & loss Account............................................................. 114
1-7 Years Balance Sheet ........................................................................................................... 115
10 Years Project Financial Analysis........................................................................................... 116
SWOT Analysis ............................................................................................................................. 117
SWOT analysis by type of Market Entry .................................................................................... 117
Entry via Own Retail Stores ....................................................................................................... 117
Entry via Domestic Retail Joint Venture ..................................................................................... 117
Entry via National Franchise Licensee ....................................................................................... 118
Entry via Intensive Individual Franchising .................................................................................. 118
Entry via Exclusive National Distributor ..................................................................................... 119
Entry via Intensive National Distribution / Wholesaling .............................................................. 119
Competitive Analysis ..................................................................................................................... 120
Indonesia Representative Brands .............................................................................................. 120
Singapore Representative Brands ............................................................................................. 121
Vietnam Representative Brands ................................................................................................ 122
Market Penetration Prospects ....................................................................................................... 123
Advancing into the target markets ............................................................................................. 123
Brand Concept ........................................................................................................................... 124
Brand Equity .............................................................................................................................. 124
Customer Based Brand Equity................................................................................................... 125
Brand Knowledge ...................................................................................................................... 125
Substantial Brand Knowledge & Awareness All Brands.......................................................... 125
Brand Equity Model.................................................................................................................... 126
Substantial Brand Loyalty All Brands ...................................................................................... 127
Substantial Brand Quality v Price Perceptions All Brands .................................................... 128
Brand Knowledge Components ................................................................................................. 129
13
Introduction
The growth of the middle classes in Asia-Pacific countries and the globalization of womens garment
retailing have led to the rapid expansion of global brands in Asia-Pacific markets.
These brands may be conveniently divided into the following main groupings:
Luxury
High Street
Asia-Pacific Brands
Department Stores Brands & Generic Brands
Whereas in Europe and North America these brands are purchased by all Social and Income Groups,
in Asia the purchases often tend to be more skewed towards the higher end of the spectrum simply
for the reason that local median income levels tend to be less than those of buyers in Europe and
North America. Thus whereas many of the High Street brands would in Europe and North America be
regarded as inexpensive and therefore accessible to the D and E social groups, in many Asia-Pacific
countries these same brands would be more patronized by the C1 and C2 social groups.
Furthermore, there is a sociological context to the development of the global brands in Asia which
make them more acceptable to those potential buyers more exposed to globalized culture through
their education or through the media they observe.
The growth and market penetration of the globalized brands in Asia will certainly be more promising
and sustainable in Asia than for the same brands in North America and Europe.
With a rapidly growing middle class in most Asia-Pacific countries there is a significant augmentation
in household incomes. As household income grows the percentage of disposable income which was
in the past used on food is diminishing and this provides the basis for much more discretionary
spending. Inevitable the use of some of that disposable income will be channelled into fashion
products.
14
Luxury Goods
Leisure Goods
Footwear
Medical
Home
Furnishings
Durables
Clothing
Australia
36
34
Bangladesh
72
Cambodia
68
China
55
19
Hong Kong
44
30
India
68
Indonesia
62
12
Japan
36
34
Malaysia
57
14
New Zealand
36
38
The Philippines
61
13
Singapore
40
36
South Korea
37
35
Sri Lanka
70
Taiwan
42
33
Thailand
55
17
Vietnam
68
Disposable Income and Discretionary Spending (together with the consumers own assessment of
future trends) is measured during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
In most Asia-Pacific markets the Value Proposition of many Luxury and High Street brands have
survived intact; conversely in North America and Europe the Value Proposition of many Luxury and
High Street brands have been devalued for a number of reasons. Fashion Garments, as with
Jewellery and Cosmetics products, have seen their perceived worth diminished during the last decade
or so in North America and Europe. This is due to both the popularization of the brands which make
them less exclusive, and because they are perceived to be less costly to manufacture and less
durable. Some formerly high end brands have suffered for these reasons; for example, the Ralph
Lauren Polo brand is not perceived to be as up-market as before because it is now worn by C2, D and
E social groups and because their labels show that the garments are manufactured in Jamaica,
Malaysia, and more recently in even cheaper labour-rate countries. Similarly in the United Kingdom
the Burberry brand has suffered because it was adopted as a dress code or uniform by badly
behaved youth gangs of the D and E social groups; and thereby the Burberry brand became
associated with a particularly unfortunate customer base, thereby devaluing the brand.
15
There are psychological reasons which currently make Asia-Pacific markets more durable than, for
example, the United Sates or the United Kingdom markets and that is the general neurotic1 (and
sometimes psychotic) psychology of female fashion and luxury goods consumers in some countries.
The increasingly neurotic nature of some of these customer bases is tending to divert expenditure
away from fashion into other neurotic activities.
In, for example the United Sates and the United Kingdom, neurotic behaviour patterns have
increasingly led women to succumb to eating disorders (which has led to obesity) and impulsive
disorders like drinking alcohol to excess. This has caused a rapid rise in over-weight women (over
50% of the adult female population in the United Sates and the United Kingdom are over-weight) and
clinical obesity (over 35% of the adult female population in the United Sates and over 25% of the adult
female population in the United Kingdom are clinical obese). This means that these women find it
increasingly difficult to interact and interface with fashion products and as a consequence they do not
perceive themselves to be capable of engaging with much of the fashion industry.
Neuroses play an important part in the purchasing behaviours of consumers, especially with fashion
and luxury goods, and these neuroses represent both opportunities and threats to fashion product
manufacturers and retailers.
The good news for fashion product manufacturers and retailers is that a neurotic customer base
makes it relatively easier for retailers to loosen the purses of buyers; the bad news is that a neurotic
customer base has a short attention span and is prone to be irrationally diverted to other neurotic
activity.
1
The terms neurosis and psychosis are used in their clinical context. The symptoms as described as follows:-
There are many forms of neurosis: obsessive-compulsive disorder, anxiety neurosis, hysteria, and a very wide variety of
phobias as well as obsessions. Effects of neurosis can involve anxiety, sadness or depression, anger, irritability, mental
confusion, low sense of self-worth, et cetera; behavioural symptoms such as phobic avoidance, vigilance, impulsive and
compulsive acts, lethargy, et cetera; cognitive problems such as unpleasant or disturbing thoughts, repetition of thoughts and
obsession, habitual fantasizing, negativity and cynicism, etc. Interpersonally, neurosis involves dependency, perfectionism,
feelings of isolation, socio-culturally behaviours, et cetera.
Individuals who score high on neuroticism are more likely than the average to experience such feelings as anxiety, anger, envy,
guilt, and depressed mood. They respond more poorly to environmental stress, and are more likely to interpret ordinary
situations as threatening, and minor frustrations as hopelessly difficult. They are often self-conscious and shy, and they may
have trouble controlling urges and delaying gratification. Neuroticism is a risk factor for the "internalizing" mental disorders such
as phobia, depression, panic disorder, and other anxiety disorders (traditionally called neuroses). Research has found that a
wide range of clinical mental disorders are associated with elevated levels of neuroticism compared to levels in the general
population. Disorders associated with elevated neuroticism include mood disorders, such as depression and bipolar disorder,
anxiety disorders, eating disorders, schizoaffective disorder, dissociative identity disorder, and hypochondriasis. Mood
disorders tend to have a much larger association with neuroticism than these other disorders. The remaining personality
disorders had either modest positive or non-significant (in the case of narcissistic and histrionic) associations with neuroticism.
Research has consistently found that on average, women score moderately higher than men on neuroticism. A study
examining gender differences in big five personality traits in 55 nations found that across nations the most pronounced gender
difference in personality was in neuroticism. In 49 of the 55 nations studied, women scored significantly higher in neuroticism
than men. In no country did men report significantly higher neuroticism than women, although in Botswana and Indonesia, men
were slightly higher than women. Gender differences in neuroticism within nations ranged from very small to quite large. The
differences were moderate to large in 17 countries, and small to moderate in 29 countries. In only seven countries Bangladesh, Tanzania, Ethiopia, Greece, Japan, Botswana, and Indonesia - were they negligible. African and Asian/South
Asian world regions tended to have smaller sex differences in personality overall than did western world regions (Europe, and
North and South America). Differences in the magnitude of sex differences between world regions were due to differences
between men in these respective regions. That is, men in western world regions were lower on neuroticism compared to men in
African and Asian/South Asian world regions. Women, on the other hand tended not to differ in neuroticism across regions.
Gender differences were also positively associated with measures of human development, that is, a long and healthy life,
access to knowledge and education, and decent standards of living. Sex differences became more pronounced in countries
with higher levels of human development. It is speculated that resource poor environments (that is, countries with low levels of
development) may inhibit the development of gender differences, whereas resource rich environments facilitate them. This may
be because males require more resources than females in order to reach their full developmental potential. Evolutionary
theories suggest that gender differences in neuroticism developed because men have evolved to be more risk taking whereas
women have evolved to be more cautious and hence more anxious and avoidant when faced with danger.
16
Asia-Pacific Fashion
The market for Branded Womens Fashion wear is becoming increasingly sophisticated in the AsiaPacific markets.
When Jimmy Lai started the Giordano brand in Hong Kong in 1981 the business model was relatively
unsophisticated, and relied on a facsimile American product offering coupled to an Italian sounding
brand name. Giordano ran into problems and since 2001 their business model has proved somewhat
fragile. The question remains: can an Asia-Pacific company produce facsimile American or European
product designs with an American or European sounding brand name and succeed? The probability is
that this business model will not succeed in the long term. Indeed Peter Lau, the current CEO of
Giordano is now actively seeking a more robust business model.
The reasons for the less than dynamic growth for brands like Giordano is not because the product
design or the product quality is less than that of any of the American or European brands, it is just that
Asia-Pacific buyers, especially women, are fully exposed to American and European brands and they
value the brand image or legacy of those global brands.
In Indonesia, Singapore and in other Asia-Pacific countries there is a new generation of fashion
entrepreneurs with great ambition and encouraging designs. Can this new generation of fashion
designer introduce products which are marketable across Asia?
With thousands of new brands being produced in Asia it is increasingly difficult for brands and
designers to achieve long term success.
Korean Fashion
Korean Brands, like those of Woo Jong Wans Basic House, have also emulated American or
European design trends and coupled these with Brand names like Basic House, Mind Bridge, Voll,
The Class, DUrban, and so forth.
The Singapore department store, Robinsons, carries the Basic House products; however these
brands have not greatly succeeded against the European or American brands sold in Singapore.
This study is designed to answer one question; how can Korean Womens Fashion brands and
designers profitably market their products to an increasingly sophisticated customer base?
What tactics and strategies should the Korean companies use to counter the existing brands; and
which market or product niches will open up new opportunities for the Korean companies?
17
Objectives
To research the Womens Fashion Market in Indonesia and thereby develop entry strategies for the
penetration of that market
Criteria
1.
Report Criteria
This report has been conducted using primary and secondary research:
Primary Personal Interviews were conducted with Fashion Experts at Fashion Magazines or
other Media, Fashion Brand Managers, Fashion Trade Buyers, Fashion Retailers, In-store
Retail Negotiators, Retail Mall Operators, Fashion Wholesalers, Property & Real Estate
agents, Shop-fitting companies, Shipping and Logistics companies. The discussions with
these persons covered the following issues based on the interviewees personal or corporate
experiences:-
Company History
Planned Products & Services during Start-up
Current Market Analysis
Current Strategy & Implementation
Current Management
Current Financial Plan
Start-Up Investment Fund Sources & Use of Funds
Shop Legal Entity & Ownership
Company History to Date
Company Facilities
Company Key Assets
Actual Products Carried & Services Offered
Description
Target Customer
Competition
18
SWOT ANALYSIS
Strengths
Location
Consumer base
Weaknesses
Untested markets
Niche markets
Opportunities
Online presence
Threats
Philosophy
Product Development
Internet Strategy
Marketing Strategy
Sales Strategy
Strategic Alliances
Operations
GOALS
Hosting events
EXIT STRATEGY
19
MANAGEMENT
Organizational Structure
Leadership
Staff Members
FINANCIAL PLAN
Finance Requirements
Use of Funds
Financial Assumptions
Primary Surveys of Consumers and Retail Customers were undertaken to analyse Brand
awareness and attitudes in Indonesia. These Surveys included not only Womens Fashion
products, but also other Luxury and High Street Brands in order to fully evaluate the impact of
Branding on Disposable Income and Discretionary Purchases in Indonesia. See details
below.
Market and Financial Data from 1997 to 2011, forecast to 2012-2018 and 2018-2025.
Market and Financial Data in US$ prices and Local Currency by year.
Parameters
2.
Research overview
Research Subjects
Female clothing target market: Up to 19 years, 20-24 years, 25-34 years, 35-44
years, 45-54 years, 55-64 years, 64+ years.
20
The overall Market Data covers each of the major towns and cities in Indonesia. Click on this
link to see the towns and cities covered.
http://www.worldconsumption.info/Womens_Fashion_Indonesia/BASE_FOLDERS/World_Citi
es/ID.html
21
Brand Surveys
This evaluation consists of Consumer Surveys undertaken in the shopping areas and malls of
Jakarta. The data collected was for the target Womens Fashion Brands, plus other Luxury and High
Street Brands to be found in Indonesia.
Individual Brand Surveys are available (from the After-Sales Service) for each of the Brands named
below:
Luxury Brands
Burberry
Chanel
Diane von Furstenberg
Dior
Dolce & Gabbana
Gucci
Hermes
Hugo Boss
Kate Spade
Louis Vuitton
Marc Jacobs
MaxMara
Miu Miu
Prada
Valentino
Yves Saint Laurent
Banana Republic
Bershka
Calvin Klein Jeans
DKNY
Dorothy Perkins
Forever 21
GAP
GUESS
H&M
Karen Millen
Lacoste
Mango
Marks & Spencer
Miss Selfridge
New Look
Pull & Bear
Stardivarius
Top Shop
Zara
22
Asian Brands
BYSI
Esprit
G2000
Gaudi
GG<5
M)Phosis
Muji
The Executive
Carrefour
Centro
Galeri Keris
Matahari
Ramayana
Rimo
23
Brand Coverage
In addition other Luxury and High Street Brands were evaluated for their impact of Branding
on Disposable Income and Discretionary Purchases in Indonesia. These brands included non-fashion
products so that an overall appraisal of Brand Impact on Discretionary Purchases could be more
completely assessed in Indonesia.
Individual Brand Surveys are available for each of these Brands from the After-Sales Service.
Luxury Brands
a.testoni (PI)
ALBERTA FERRETTI (PI)
Aigner (PI, GI, PS, MTA, PIM 2, GC, CP)
Anteprima (PI)
alldressedup (PS)
BALENCIAGA (PI)
Bally (GI, PS, PI)
Bottega Veneta (GI, SC)
24
BSX (SC)
Barbie (PIM 2, GC, CP)
Bata (MTA, MKG, PIM, Plangi)
Bratpack (KC)
Coast London (PS, PIM 2)
Camper (PI, SC)
Cache Cache (PIM 2, EP, MKG 3, KV, KK)
Cotton On (SC, KV, KK)
Cop-Copine (GI)
Celio* (SC)
Crumpler (eX)
Converse (PI, SC, CP, Plangi)
Clarks (GI, SC, PIM 2, KK)
Columbia Sportswear Company (PI)
Charles & Keith (PI, GI, SC, MTA, MKG 3, PIM 2, PS, GC, CP, EP, fX, KK)
Charles & Keith Signature Label (PP)
Crocs (PI, GI, SC, MTA, MKG 3, GC, CP, EP, kemang, KV, KK)
Cymbeline Paris (MTA)
Crocodile (GI)
Condotti (MTA, GC, EP, KK)
Camel Active (MKG 3)
Chteau de Sable (PI, PIM 2)
Colettee (PI, SC)
Catimini Paris (PI)
DKNY JEANS (PP, PI)
Desigual (PS)
Dorothy Perkins (GI, CP, PIM 2, GC, KK)
Donini (PP, PIM 2, KK)
DC Comics Super Heroes (PI, PIM 2, GI, GC)
DC Shoes (KV)
diva (CP, KK)
Delsey (GC)
Esprit (GI, PP, MTA, MKG 3, PIM 2, KK)
edc by esprit (PP, MTA, MKG 3)
Evita Peroni (PP, SC, KV, KK)
ecco (KK)
Elle (GI, PIM)
Elle Homme (GI, MTA, MKG 3, PIM 2)
Elle Kids (GI)
Everlast (KK)
Ellesse (KC)
Everbest (PP, SC, PS, GC, Plangi)
evb* (MKG, GC)
EXR Progressive (SC)
Emile et Rose (PI)
ebase (PIM 2)
FRED PERRY (PI)
Folli Follie (PP, PS, PI, GC)
FOREVER 21 (GI)
Forever New (KV, KK)
27
Department Stores
Multi-brand
Indonesian Brands
Mineola (KK)
Moselle (PI)
Magic Happens x MYE (GI)
Mimsy (GI)
Monday To Sunday (GI)
Monaco (MTA, PIM 2)
N.Y.L.A (GI, SC, MTA, PIM 2, GC)
Nail (GI, MTA, GC)
Number 61 (MKG 3)
Naima (GI)
No'om and Soe.Hoe (GI)
One Earth (MKG 3)
Ocean Line (CP, GC)
Orange (MTA, SC, MKG 3, PIM 2, GC)
Osella Kids (EP)
Office 2000 (PI, PP, PS, SC)
Phoebe & Chloe (PI, GI, CP)
Plus Minus (SC)
Parang Kencana (PS, PP, GI)
P.S. (GI, MKG, PIM)
Periplus (PI, PS, MKG, PIM)
Plastic Culture (GI)
Red Liquid (PI)
Roemah Pengantin by Anne Avantie (GI, MTA)
Rockets (SC, PIM 2)
R n beth (PI)
Rebel For A Cause Charity Store (GI)
Sebastian's (PI, PS, MTA)
Studio 133 Biyan (SC, MKG 3)
STELLA RISSA (GI)
Sally Koeswanto (GI)
Simplicity (MTA, MKG)
Stellamas (PI)
Satcas & Sash (GI)
Saint and Sinner (GI)
Silla Home (GI)
Salt n Paper (PIM 2, eX)
Tina Andrean (GC)
Tracce (PP, MKG 3, PIM 2, GC)
The Little Things She Needs (eX, GI, CP, MKG 3, SC, GC, EP, KK)
T-Lab (PI, PS)
The Executive (GI, MTA, MKG, GC, EP, Plangi, CP, KK)
The Cat Walk Gallery (MKG 3)
Tic-Tac-Toe (PI)
Tiny & Co. (PI)
Tik Shirt (GI)
Tick Tock (GI)
Tosavica (GI)
Urban Twist (SC, MTA, MKG)
Uptown Girl (MTA, MKG)
34
35
Market Opportunity
Analysis of the development of the retail trade and its life cycle
The choice of route to the market has opportunities and pitfalls, product and brand superiority is an
obvious competitive advantage which can be re-enforced through firm control of the retail channels.
However products and brands superiority is a medium and long-term strategy which can be unstable
and may be subject to short-term set-backs. Clearly strong brands with real product benefits have the
best competitive advantage, and for this reason the long-lived brands have consistently invested in
brand equity.
The low transaction cost routes to the market have clear benefits, but may suffer from sustainability
problems as the concept adopted is easy and inexpensive to replicate by competitors. The majority of
foreign brands operating in any one country tend to choose the Medium Added Value and Medium
Transaction Costs routes to the market as these are tested and known. However the use of novel and
innovative channels of distribution are being increasingly explored by the brand leaders. Newcomers
are less inhibited (than the entrenched brands) in trying and testing new distribution channels and
often new brands can achieve improved market penetration through imaginative distribution policies
and tactics.
The task of any brand seeking to enter these markets is to achieve an alignment with the distribution
and a synergy with consumer buying behaviours and expectations.
The above considerations are of course an analogy of the life cycle of particular channels. Failure to
respond and adapt in the above manner will inevitably result in the premature shortening of the life
cycle of any particular channel.
The purchasing criteria of consumers will be recognisable, and have been specified in other sections
of this study. The basic criteria are inevitably the same in most of the countries:
Price
Availability
Brand
Quality
Shopping experience
Store Personnel
Store appeal
Promotional actions
Et cetera
How these criteria then interact with particular channels is the important issue; as is how these criteria
and the individual channel can be correlated and manipulated to maximise Added Value and minimise
Transaction Costs.
36
eCommerce
Telemarketing
Social Network
Sales Tactics
Consumer Party
Plan
Direct Selling to
Independent
Retailers
Multi-Brand Retail
Stores
Selling via
Exclusive
Distributors
Retail Franchising
National Brand
Licensing
Owned Exclusive
Brand Stores
AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
37
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Australia
10
10
10
10
11
11
10
Bangladesh
Cambodia
China
10
Hong Kong
10
10
India
10
Indonesia
Japan
10
10
10
10
Malaysia
New Zealand
10
10
10
The Philippines
10
Singapore
South Korea
10
10
10
10
10
10
10
11
Sri Lanka
Taiwan
Thailand
Vietnam
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Australia
3500
3898
4341
4834
4845
5395
6009
6022
6707
7469
7486
Bangladesh
1500
1497
1659
1656
1836
2035
2031
2252
2496
2491
2762
Cambodia
1450
1453
1618
1802
1806
2012
2240
2245
2501
2506
2791
China
2400
2417
2705
3027
3049
3070
3092
3114
3137
3159
3535
Hong Kong
19800
20900
22061
20958
19910
18915
17969
18967
20021
19020
18069
India
1800
1865
2148
2474
2564
2657
2753
2853
3286
3784
3921
Indonesia
1700
1950
2237
2309
2649
2734
2823
3238
3343
3834
4398
Japan
11100
10533
11105
10538
11111
10543
10005
10548
11122
10553
10014
Malaysia
2200
2280
2625
2721
2820
2922
3029
3139
3614
3746
3882
New Zealand
4500
4455
4410
4366
4323
4279
4237
4660
5126
5075
5024
Philippines
1100
1196
1301
1415
1709
2066
2496
2714
3280
3963
4789
Singapore
8100
7953
7808
8518
9292
9123
9953
10858
11845
12921
12686
South Korea
3300
3785
3908
4034
4165
4777
5480
6286
6489
7443
7684
Sri Lanka
1600
1767
1951
1939
2140
2127
2349
2593
2577
2846
2828
Taiwan
3200
3223
3246
3269
3292
3316
3711
4152
4182
4212
4242
Thailand
8300
8093
7890
8548
8334
9029
9781
9536
9298
10073
10912
Vietnam
2100
2176
2256
2597
2692
3100
3212
3329
3450
3576
4117
38
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Australia
340
341
342
342
343
382
383
426
475
476
477
Bangladesh
131
131
145
145
160
160
177
177
196
196
195
Cambodia
134
134
150
150
150
167
168
187
208
232
232
China
236
238
266
268
300
302
338
340
343
383
386
Hong Kong
1908
2014
1913
1818
1727
1823
1924
2031
2144
2036
2150
India
159
165
171
177
204
211
219
252
261
301
346
Indonesia
170
195
201
208
238
246
254
291
301
311
321
Japan
1188
1253
1321
1253
1189
1128
1190
1254
1323
1394
1470
Malaysia
205
212
245
282
292
303
314
361
416
431
447
New Zealand
394
433
429
425
421
463
509
504
499
494
543
Philippines
110
133
161
194
211
255
308
335
405
489
591
Singapore
722
788
859
844
828
813
887
968
950
933
916
South Korea
302
312
358
410
423
437
501
575
660
757
868
Sri Lanka
146
161
178
177
195
194
193
213
235
234
258
Taiwan
305
341
344
385
430
434
437
489
492
496
555
Thailand
763
744
806
873
946
922
999
974
950
1029
1115
Vietnam
185
192
221
229
237
273
283
326
375
389
448
2016
2017
2018
2019
2020
2015
2014
2013
2012
2011
2010
Australia
97
84
77
67
69
72
60
70
73
61
61
Bangladesh
89
89
82
88
89
75
90
77
77
76
69
Cambodia
93
92
88
79
84
79
74
85
87
97
83
China
97
103
98
88
97
94
114
105
105
115
110
Hong Kong
100
98
91
85
89
98
107
108
107
112
118
India
90
90
79
69
75
83
80
83
81
75
83
Indonesia
101
99
90
94
94
88
85
87
87
84
71
Japan
104
116
115
115
109
109
123
121
121
128
140
Malaysia
91
91
91
104
101
101
106
116
120
118
110
New Zealand
87
97
97
100
93
107
116
108
102
94
109
Philippines
100
105
117
130
120
119
122
125
119
120
118
Singapore
90
99
108
103
90
86
92
88
82
73
71
South Korea
91
82
96
103
100
94
93
94
102
106
116
Sri Lanka
93
95
93
88
90
86
78
82
87
82
91
Taiwan
98
104
111
112
124
135
112
117
121
118
129
Thailand
87
94
104
97
111
102
104
99
105
99
101
Vietnam
83
90
97
90
83
88
88
93
105
104
108
39
Wholesale - Domestic
owned & controlled
Wholesale - Foreign
controlled
Wholesale - Joint
Ventures
Wholesale - Other
Retailer - Domestic
owned & controlled
Retailer - Foreign
controlled
Retailers - Joint
Ventures
Australia
82
83
Bangladesh
86
82
Cambodia
87
80
China
87
84
Hong Kong
81
12
77
11
India
91
84
Indonesia
84
79
Japan
85
81
Malaysia
New
Zealand
Philippines
83
80
85
78
82
81
Singapore
South
Korea
Sri Lanka
82
81
87
83
87
86
Taiwan
85
80
Thailand
82
82
Vietnam
91
86
40
Competitive Channels where more than one channels competes for the same consumer
segment. This permits dynamic pricing tactics, promotional opportunities and better inventory
management mechanisms.
Direct selling an Party Plan to access specific demographics (Married women, Older women,
women in rural locations)
Telemarketing which can access Housewives and women at their work place.
Social Network integration with mobile applications to promote specific events and shopping
experiences for the younger demographics.
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
8
3
2
8
6
4
3
5
3
9
5
5
8
3
6
3
3
9
4
3
9
7
5
4
6
4
10
6
6
9
4
7
4
4
11
5
4
10
8
6
6
7
5
11
7
7
10
5
8
5
5
12
7
5
11
9
7
6
8
6
13
8
8
11
6
9
6
6
13
8
7
12
10
8
7
9
7
13
9
9
12
7
10
7
7
14
9
8
13
12
9
8
10
8
14
11
10
13
8
11
8
8
15
10
8
14
13
10
9
11
9
15
11
12
14
9
12
9
9
16
11
9
15
14
11
10
12
10
16
12
12
15
10
13
10
10
17
12
10
15
15
12
11
13
11
17
13
13
17
11
14
10
11
18
13
12
16
16
13
12
14
12
18
14
15
18
11
15
11
12
The data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
41
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
19
14
12
17
16
14
13
16
13
19
15
15
19
13
16
12
13
Australia
Bangladesh
Cambodia
X
X
China
X
Hong Kong
India
Japan
Malaysia
New Zealand
X
X
Philippines
X
South Korea
X
Sri Lanka
Taiwan
X
Thailand
Vietnam
Indonesia
Singapore
Multi-channel Distribution
Non-Exclusive Distributor
Exclusive Distributor
42
Symbiotic marketing
Professional Management
ERP methodology
Australia
Adaption of Distribution
Strategies
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Singapore
South Korea
Japan
Malaysia
New Zealand
Philippines
X
X
Sri Lanka
Taiwan
Thailand
Vietnam
The countries marked with an X indicate the need for the distribution strategies to be analysed in
depth to understand the implications.
43
National Wholesalers
Regional Wholesalers
Independent Wholesalers
National Retailers
Regional Retailers
Independent Retailers
Mail Order
Catalogue
Online
Purchasing power
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
Purchasing power is defined by the relative discounts and terms of payment achieved that each level
of the supply chain can achieve when negotiating with their suppliers. In general the distribution and
retail buyers can usually negotiate more advantageous terms with suppliers from Asia than with
suppliers from North America or Europe.
44
The Retail Trade Life Cycle and Brand Development in Womens Fashion have been very consistent
since the 1980s. Obviously in certain more developed countries like Australia, Japan, South Korea the
stage of the Life Cycle is fully mature and has reached saturation.
China will during the next decade experience structural problems with the age demographic and this
will affect Womens fashion products.
It is not anticipated that the newly developing Asia Pacific countries will catch up with the developed
countries before 2025. Indeed with the effects of an aging population throughout the region there is
some doubt about the impact the age demographic will have on the life cycle in many Asia Pacific
countries.
45
The future of the Retail Trade in the Asia Pacific region will emulate the development of the trade in
North America and Europe; expect that the development will be greatly accelerated. Essentially the
Asia Pacific trade will clone the concepts and systems used in North America and Europe and simply
adapt those to local conditions. Thus whereas in North America and Europe Womens Fashion brands
took some three decades to evolve, in Asia Pacific region this will be done much rapidly and will
depend solely on the ability of the local populations to have the disposable income to afford such
consumer brands.
In the larger countries, like China, India and Indonesia, it is probable that traditional retailing will never
fully evolve; as is has done in North America and Europe. This is due to the rapid changes in age
demographics within these countries and the effects of new distribution processes like online retailing.
For womens fashion brands to develop along tradition lines, in the high street and shopping malls, it
will be necessary for retailers to develop and enhance the shopping experience to draw consumers
to their brands.
The overall Market Data covers each of the major towns and cities in Indonesia can be found here:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/BASE_FOLDERS/xls_MarketResear
ch/CTM.xls
Detailed Market Data covers each of the major towns and cities in Indonesia can be found here:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/MarketResearch/MR_TOWN_MARK
ET.htm
46
Products
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Brand Management
Product Management
Marketing & Selling Activity
Store Presentation & Merchandising
Product Offering Specifications & Characteristics
Product Quality Control
Design Research & Development
Customer Handling
Product Sourcing & Control
Financial Controls
Staff Training / Control & Relations
Product Throughput Capacity & Control
Supply System Control & Development
Distribution Control
Product Handling Systems & IT
Retail Operations
Buyer Profiles
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Immediate Distributors
6. Immediate Trade
7. Immediate End Users
8. Immediate Other Users
9. End User Age: <25
10. End User Age: 25-55
11. End User Age: 25-55
12. End User Social Group: AB
13. End User Social Group: C1
14. End User Social Group: C2
15. End User Social Group: DE
Trading Area
1.
2.
3.
Jakarta
Surabaya
Bandung
47
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Medan
Semarang
Palembang
Ujung Pandang
Malang
Padang
Surakarta
Kupang
Yogyakarta
Banjarmasin
Pontianak
Manado
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Luxury Brands
European High Street Brands
American High Street Brands
Asian Brands
Indonesian Labels
Zara
Mango
GAP
Top Shop
Dorothy Perkins
Marks & Spencer
The Executive
Karen Millen
H&M
Calvin Klein Jeans
Competitors
These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.
48
The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions
49
Market Size
Indonesia Branded Market Volume Sold in units by Product Sectors
2007
2008
2009
2010
2011
53,484,859
57,611,532
48,269,766
48,471,307
51,337,352
9,526,845
8,934,055
8,744,010
8,206,428
7,954,027
50,991,834
48,407,030
46,543,447
42,734,940
38,894,493
107,289,477
102,634,671
110,099,876
96,379,220
96,398,309
11,956,902
12,692,097
10,614,662
9,906,191
11,179,431
54,755,269
48,491,466
46,540,555
47,504,416
42,248,751
Fashion Accessories
97,616,635
86,501,478
79,078,088
65,151,083
70,653,314
Indonesia
Young Casual Wear
Career Wear
Denim & Casual Wear
Every day Wear
2007
2008
2009
2010
2011
1,405,920
1,288,388
1,219,106
1,154,129
1,050,166
265,100
275,231
212,277
227,439
203,761
1,069,791
1,006,153
1,013,070
993,686
944,845
3,031,121
3,132,912
2,291,444
2,341,384
2,169,188
267,720
303,695
263,253
256,353
245,992
1,351,340
1,431,499
1,203,009
1,149,630
1,115,283
Fashion Accessories
2,276,722
1,969,247
1,865,766
1,936,966
1,604,711
2007
2008
2009
2010
2011
12,034,846
14,424,131
12,183,127
12,446,896
9,583,164
2,549,570
2,220,044
2,272,262
1,992,507
2,059,919
10,782,464
9,252,172
9,464,232
8,152,172
7,413,800
24,042,658
25,230,759
21,543,970
21,594,873
24,071,680
2,795,290
2,688,551
2,716,908
2,531,636
2,457,093
11,843,970
12,511,958
11,172,413
11,115,851
11,588,574
Fashion Accessories
18,127,938
21,567,514
18,118,158
16,812,320
16,834,647
Singapore
Young Casual Wear
Career Wear
Vietnam
Young Casual Wear
Career Wear
50
Womens Fashion Lines at Producer Prices in US$ 1997 to 2011, 2012-2018 and 2018-2025
http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/ID_M0Mx44812WF_L.
xls
Womens Garment Lines at Producer Prices in US$ 1997 to 2011, 2012-2018 and 2018-2025
http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/ID_M0Mx44812WG_L.
xls
Detailed Market Data covers each of the major towns and cities in Indonesia can be found here:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/MarketResearch/MR_TOWN_MARK
ET.htm
51
Consumer Attitudes
Products
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Brand Management
Product Management
Marketing & Selling Activity
Store Presentation & Merchandising
Product Offering Specifications & Characteristics
Product Quality Control
Design Research & Development
Customer Handling
Product Sourcing & Control
Financial Controls
Staff Training / Control & Relations
Product Throughput Capacity & Control
Supply System Control & Development
Distribution Control
Product Handling Systems & IT
Retail Operations
Buyer Profiles
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Immediate Distributors
6. Immediate Trade
7. Immediate End Users
8. Immediate Other Users
9. End User Age: <25
10. End User Age: 25-55
11. End User Age: 25-55
12. End User Social Group: AB
13. End User Social Group: C1
14. End User Social Group: C2
15. End User Social Group: DE
Trading Area
1.
2.
3.
Jakarta
Surabaya
Bandung
52
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Medan
Semarang
Palembang
Ujung Pandang
Malang
Padang
Surakarta
Kupang
Yogyakarta
Banjarmasin
Pontianak
Manado
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Luxury Brands
European High Street Brands
American High Street Brands
Asian Brands
Indonesian Labels
Zara
Mango
GAP
Top Shop
Dorothy Perkins
Marks & Spencer
The Executive
Karen Millen
H&M
Calvin Klein Jeans
Competitors
These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.
Consumer Surveys
Products:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Database/FASHION_ID_SU4P.xls
Retail Operations:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Database/FASHION_ID_SU4O.xls
Trade Decision Makers Surveys:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Database/FASHION_ID_SU4A.xls
Trading Area
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Database/FASHION_ID_SU4T.xls
Competitors
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Database/FASHION_ID_SU4C.xls
53
The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions
54
Competitive Factors
Representative Brands
55
58
23
27
27
23
7
6
7
6
5
13641600
6182400
6066900
6026400
5168100
1881600
1512000
1499400
1425600
1228500
% Market Share
High
High
High
High
High
High
Low
High
High
low
Moderate
Moderate
Moderate
Moderate
Moderate
High
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Low
Low
Low
High
High
High
High
High
High
Selling Space
SqM
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
End 2012
Yes
Yes
Yes
Yes
Yes
Yes
Revenues
Competitive
Stance
IDB
GHS
IDB
GHS
AB
GHS
AB
AB
GHS
AB
GHS
AB
GHS
GHS
AB
GHS
GHS
GHS
GHS
GHS
GHS
GHS
GHS
GHS
GHS
GHS
GHS
GLux
GLux
GLux
GLux
GLux
GLux
Stores
Brand Research
Data Available
The Executive
Mango
Gaudi
GUESS
Esprit
Zara
Muji
G2000
Top Shop
GG<5
GAP
M)Phosis
Pull & Bear
Bershka
BYSI
Forever 21
DKNY
New Look
Banana Republic
Dorothy Perkins
Lacoste
Calvin Klein Jeans
Marks & Spencer
Miss Selfridge
Karen Millen
Stardivarius
H&M
Louis Vuitton
Gucci
Chanel
Burberry
Prada
Yves Saint Laurent
Type
Indonesia
Brand
The Survey results in this report cover the following Representative Brand in Indonesia:-
4541
2875
1992
3024
2028
903
464
630
756
369
22
10
9
9
8
3
2
2
2
1
Marc Jacobs
Miu Miu
Dior
Dolce&Gabbana
Hugo Boss
Valentino
Hermes
Kate Spade
MaxMara
Diane von Furstenberg
Matahari
Centro
Galeri Keris
Rimo
Ramayana
Carrefour
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
G/DS
G/DS
G/DS
G/DS
G/DS
G/DS
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Low
Low
Low
High
Moderate
Moderate
Low
Low
Low
56
26
23
14
14
7
8
10
8
7
6
29832000
16146000
11312000
7812000
6552000
6400000
5820000
5568000
5152000
4944000
% Market Share
High
High
Moderate
High
Moderate
High
High
High
Moderate
High
High
High
High
Moderate
High
High
Moderate
Low
Moderate
Selling Space
SqM
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Revenues
Competitive
Stance
AB
AB
GHS
SGB
GHS
GHS
SGB
SGB
GHS
GHS
SGB
AB
GHS
GHS
AB
GHS
GHS
GHS
GHS
Stores
Brand Research
Data Available
G2000
ESPRIT
Mango
M)phosis
Zara
Dorothy Perkins
BYSI
GG<5
DKNY
Topshop
Fox
Uniqlo
Warehouse
GAP
Muji
Forever 21
Pull & Bear
New Look
Guess
Type
Singapore
Brand
IDB = Indonesian Brand : AB = Asian Brand : GHS = Global High Street : GLux = Global Luxury
G/DS = Generic brands / Department Store
2751
2409
1909
1176
970
1126
940
712
924
666
17
9
6
4
3
3
3
3
3
2
Maxstudio
Banana Republic
BCBGMAXAZRIA
Karen Millen
CK Jeans
Miss Selfridge
WOMB
Wallis
River Island
Bershka
Abercrombie & Fitch
H&M
Gucci
PRADA
Armani
Dolce & Gabbana
Dior
Hermes
Chanel
Louis Vuitton
Miu Miu
YSL
Ralph Lauren
Fendi
Etro
Bottega Veneta
Celine
Balenciaga
Loewe
Valentino
Ferragamo
Givenchy
Burberry
Diane von Furstenberg
Marc Jacobs
Kate Spade
Max Mara
Isetan
Tangs
Takashimaya
Robinsons
OG
BHG
GHS
GHS
GHS
GHS
GHS
GHS
SGB
GHS
GHS
GHS
GHS
GHS
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
G/DS
G/DS
G/DS
G/DS
G/DS
G/DS
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
High
Low
High
High
Moderate
High
High
High
Moderate
Low
Moderate
Moderate
High
High
High
High
High
High
High
High
High
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Low
Low
Low
Low
Low
High
High
High
High
Moderate
Moderate
SGB = Singapore Brand : AB = Asian Brand : GHS = Global High Street : GLux = Global Luxury
G/DS = Generic brands / Department Store
57
Moderate
Moderate
Moderate
High
Moderate
Moderate
High
Moderate
Moderate
High
High
Moderate
High
Moderate
Moderate
Low
High
High
High
High
High
High
Moderate
Moderate
Moderate
Low
High
Moderate
Moderate
38976000
5350000
4462000
2380000
2120000
1764000
1260000
558000
540000
505000
12841
2227
1966
985
888
745
604
278
250
253
VMB = Singapore Brand : AB = Asian Brand : GHS = Global High Street : GLux = Global Luxury
G/DS = Generic brands / Department Store
58
174
25
23
8
8
9
7
3
2
2
% Market Share
Competitive Stance
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
End 2012
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Revenues
VMB
VMB
VMB
GHS
GHS
AB
AB
AB
GHS
GHS
GHS
AB
GHS
GHS
GHS
GHS
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
GLux
G/DS
G/DS
G/DS
Stores
Blue Exchange
PT 2000
Hagatini
Mango
Calvin Klein Jeans
G2000
Esprit
M)Phosis
DKNY
GAP
Zara
BYSI
GUESS
Lacoste
Karen Millen
Banana Republic
Louis Vuitton
Gucci
Chanel
Burberry
Prada
Yves Saint Laurent
Marc Jacobs
Dior
Dolce&Gabbana
Valentino
Parkson / Saigon Paragon
Tax
Vincom
Brand Research
Data Available
Vietnam
Brand
Vietnam
61
8
7
3
3
2
1
0
0
0
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
5 Representative
Brands.
(Other brands
available
in the core database)
14
19
12
10
11
15
10
15
23
Mango
24
28
13
11
18
18
11
14
11
11
19
16
18
28
Gaudi
12
18
12
12
16
13
17
GUESS
31
42
24
17
25
22
14
20
18
16
29
22
32
44
Esprit
17
29
11
12
13
19
11
16
25
Zara
18
30
14
18
16
12
11
10
13
22
16
18
28
Muji
21
23
14
16
16
10
13
21
12
20
28
G2000
15
26
10
13
13
20
ESPRIT
21
25
12
11
13
11
11
14
19
27
Mango
25
38
18
11
14
19
12
12
12
11
23
12
22
34
M)phosis
16
31
14
16
11
11
12
10
10
16
13
17
27
Zara
23
30
16
11
17
19
15
11
15
11
18
15
20
32
Dorothy Perkins
25
27
18
18
18
13
12
11
10
24
14
21
39
BYSI
16
27
12
12
13
13
11
11
15
11
18
30
Blue Exchange
14
20
11
11
17
17
18
PT 2000
11
24
11
13
10
15
10
12
18
Hagatini
17
24
11
13
14
10
15
24
Mango
24
39
19
11
16
13
11
13
15
10
23
13
18
35
20
30
18
10
19
14
15
12
12
10
19
16
18
33
G2000
13
24
12
10
10
17
12
21
Esprit
20
27
11
10
12
13
11
11
11
18
11
15
25
Indonesia
The Executive
Singapore
Vietnam
59
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
51
79
70
14
53
15
59
54
41
73
45 103 120
Dresses
13
64 118
60
39
58
48
11
40
17
50
50
39
74
49
Jackets
Coats
24 142 188
113
53
92 114
18
81
31
74
63
58 113
74 129 205
Jeans
Denim
12
91 125
62
45
59
49
11
43
19
39
50
46
78
57
76
Knitwear
15
65 114
57
47
49
62
10
49
18
56
42
33
80
43
89 138
73
Vietnam
Hong Kong
54
Thailand
China
15 104 149
Bangladesh
Cardigans
Jumpers
Australia
Cambodia
84
99
Lingerie &
Under
wear
14
30
14
10
15
11
11
16
13
19
28
Maternity
Wear
44
61
33
21
30
36
30
10
22
23
20
50
30
44
67
Nightwear
30
39
23
15
16
16
16
14
17
10
22
15
25
42
Playsuits,
Dungaree
11
52
91
36
29
46
47
28
12
28
36
25
45
38
47
75
Shirts &
Blouses
48
52
32
18
37
27
27
24
30
17
48
24
45
60
Shorts
30
46
29
19
31
29
22
19
21
18
28
20
35
49
Skirt Suits
19 145 218
107
58
85
78
21
80
26
69
71
71 139
84 133 168
Skirts
20
74 147
65
48
73
77
15
52
19
59
48
36
80
54
88 114
Socks &
Tights
27
34
22
11
18
23
13
16
17
14
21
14
28
39
Sports
wear
35
48
29
17
28
23
17
17
25
15
39
23
32
51
Swim
wear
38
57
22
15
29
24
16
19
19
20
34
18
28
62
Tops
36
60
23
19
25
28
20
20
22
16
30
24
31
55
Trouser
Suits
23 121 215
117
71
82
89
18
76
29
79
94
78 137
81 110 209
Trousers,
Leggings
14
87 122
49
31
62
59
14
46
19
56
54
43
91
43
64
98
42
38
30
39
41
29
12
36
34
30
46
28
58
82
Other
84
60
Product Positioning
Casual
Product
Smart Casual
Formal
Special
Occasion
Indonesia
The Executive ID
Muji ID
20
10
35
5
18
4
9
54
48
31
8
39
21
54
22
13
20
16
23
32
16
4
29
14
71
20
43
21
Singapore
G2000 SG
18
44
19
34
9
9
47
48
34
40
50
20
18
33
17
12
8
8
28
46
10
17
10
33
8
43
27
10
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
BYSI SG
Vietnam
Blue Exchange VM
25
27
30
4
8
10
10
43
40
23
36
48
31
41
8
8
11
16
11
34
25
24
25
36
44
33
25
24
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
61
Price
Discounting
Low Price
Market
Median Price
High Price
Indonesia
The Executive ID
Muji ID
5
3
5
1
3
2
3
19
6
15
2
8
5
5
59
50
67
29
58
63
63
17
41
13
68
31
30
29
Singapore
G2000 SG
BYSI SG
5
3
3
3
2
3
4
8
7
9
12
6
6
11
65
65
55
61
59
59
62
22
25
33
24
33
32
23
Vietnam
Blue Exchange VM
4
4
3
3
1
4
2
16
15
16
5
4
6
7
63
63
58
49
61
68
55
17
18
23
43
34
22
36
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
62
Basic Quality
Median
Quality
High Quality
Premium
Quality
Indonesia
The Executive ID
Muji ID
4
3
5
3
2
2
3
38
18
27
17
18
12
13
46
45
54
27
55
53
56
12
34
14
53
25
33
28
Singapore
G2000 SG
BYSI SG
5
3
2
4
3
3
5
20
17
18
26
13
18
20
58
50
49
50
55
46
52
17
30
31
20
29
33
23
Vietnam
Blue Exchange VM
5
3
4
2
2
4
2
29
33
30
18
9
15
19
54
51
49
45
58
61
46
12
13
17
35
31
20
33
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
63
Low Product
Specification
Undifferentiat
ed Product
Differentiated
High
Specification
Indonesia
The Executive ID
Muji ID
5
2
5
2
3
2
4
18
8
14
2
7
4
6
65
54
67
10
57
63
60
12
36
14
86
33
31
30
Singapore
G2000 SG
BYSI SG
4
3
2
3
2
2
4
9
7
9
10
5
7
10
62
61
57
62
63
60
64
25
29
32
25
30
31
22
Vietnam
Blue Exchange VM
4
3
3
3
2
3
2
16
15
14
7
5
7
8
68
67
65
60
58
65
62
12
15
18
30
35
25
28
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
64
No Target
Audience
Some
Targeting
Highly
Targeted
Specific
Audience
Indonesia
The Executive ID
Muji ID
11
4
11
6
5
4
7
39
16
25
7
15
9
15
37
50
52
19
56
57
49
13
30
12
68
24
30
29
Singapore
G2000 SG
BYSI SG
8
5
7
8
7
5
10
21
19
21
29
14
14
24
52
48
44
42
47
51
44
19
28
28
21
32
30
22
Vietnam
Blue Exchange VM
9
10
7
6
4
9
7
41
30
43
16
10
15
21
36
47
30
47
53
53
43
14
13
20
31
33
23
29
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
65
High Volume
Median
Volumes
Low Volume
Restricted
Volume
Indonesia
The Executive ID
Muji ID
4
2
5
0
2
1
3
84
65
83
25
72
67
70
9
24
9
54
21
24
21
3
9
3
21
5
8
6
Singapore
G2000 SG
BYSI SG
5
2
3
3
2
3
4
76
65
65
78
65
66
72
15
24
24
15
24
24
18
4
9
8
4
9
7
6
Vietnam
Blue Exchange VM
5
4
4
3
2
4
3
84
80
77
61
63
73
67
9
12
15
27
27
18
24
2
4
4
9
8
5
6
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
66
Necessity
Product
Common
Product
Discretionary
Product
Luxury
Product
Indonesia
The Executive ID
Muji ID
10
7
13
6
6
3
8
51
19
25
7
19
11
12
32
57
53
43
57
69
64
7
17
9
44
18
17
16
Singapore
G2000 SG
BYSI SG
10
6
5
10
6
5
11
23
12
17
22
16
16
25
56
57
57
50
50
56
46
11
25
21
18
28
23
18
Vietnam
Blue Exchange VM
12
7
10
6
4
10
6
41
39
41
14
12
16
20
39
44
39
49
57
56
53
8
10
10
31
27
18
21
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
67
Frequent
Cleaning
Average
Cleaning
Infrequent
Cleaning
Specialist
Cleaning
Indonesia
The Executive ID
Muji ID
12
7
14
7
7
5
8
48
31
38
43
40
57
43
27
56
41
15
36
26
33
13
6
7
35
17
12
16
Singapore
G2000 SG
BYSI SG
12
5
7
7
7
7
10
39
18
20
19
53
60
20
38
64
61
57
31
19
59
11
13
12
17
9
14
11
Vietnam
Blue Exchange VM
10
9
8
6
5
9
7
21
20
21
37
20
56
61
58
61
56
40
55
23
14
11
10
15
17
20
12
18
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
68
Simple
Merchandisin
g
Display
Merchandisin
g
Featured
Complex
Proposal
Indonesia
The Executive ID
Muji ID
12
5
14
6
6
3
7
60
22
40
9
26
14
20
18
51
38
26
46
64
54
10
22
8
59
22
19
19
Singapore
G2000 SG
BYSI SG
9
5
7
9
7
6
10
30
23
30
32
17
26
36
50
56
33
48
58
49
39
11
16
30
11
18
19
15
Vietnam
Blue Exchange VM
9
8
10
5
4
9
5
42
52
45
21
14
20
25
39
32
29
52
50
52
39
10
8
16
22
32
19
31
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
69
Basic
Advertising
Feature
Advertising
Target
Advertising
Complex
Advertising
Indonesia
The Executive ID
Muji ID
12
8
14
7
7
5
9
56
27
49
10
30
17
22
24
42
29
44
45
57
54
8
23
8
39
18
21
15
Singapore
G2000 SG
BYSI SG
13
8
8
8
7
8
12
36
26
30
39
22
28
37
40
46
39
42
50
43
36
11
20
23
11
21
21
15
Vietnam
Blue Exchange VM
13
11
9
7
5
11
7
57
59
62
25
17
24
27
22
20
19
48
59
51
44
8
10
10
20
19
14
22
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
70
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
71
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Indonesia
The Executive ID
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
Muji ID
Singapore
G2000 SG
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
BYSI SG
Vietnam
Blue Exchange VM
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
Brand Name
Product Design
Shopping Experience
Advertising
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
72
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Indonesia
The Executive ID
Mango ID
Gaudi ID
GUESS ID
ESPRIT ID
Zara ID
Muji ID
Singapore
G2000 SG
ESPRIT SG
Mango SG
M)phosis SG
Zara SG
Dorothy Perkins SG
BYSI SG
Vietnam
Blue Exchange VM
PT 2000 VM
Hagatini VM
Mango VM
Calvin Klein Jeans VM
G2000 VM
ESPRIT VM
Functional
Symbolic
Experiential
Unknown
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
73
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
74
The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the
core database.
75
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
76
The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the
core database.
77
Communications Tactics
The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the
core database.
78
Advertising Tactics
The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the
core database.
79
The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the
core database.
80
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
81
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
82
Merchandising
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
83
Product Display
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
84
Korean Brands
Awareness of existing Korean Brands
The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the
core database.
85
The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the
core database.
86
The data above is derived from consumer surveys. 5 Representative Brands. Other brands available
in the core database.
87
The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the
core database.
88
High range designer brands: These brands are committed to luxury, style, and quality. These
iconic designer brands, typically purchased by the well-off, include for example, Gucci, Dolce
& Gabbana and Giorgio Armani. Most of the high range designer brands have a portfolio of
brands; for example, Gucci, Alexander McQueen and Yves Saint Laurent are all brands of the
Gucci Group.
Middle range high street brands: These brands bring designer trends to the high street; they
are design-led and are sold at high street prices. They include such well-known names as
United Colours of Benetton, Sisley, River Island, Nike, and Adidas. Clothing companies may
own more than one middle range high street brand; for example, Oasis, Coast and
Warehouse, which is owned by Aurora Fashions.
Low cost brands: Low cost brands offer contemporary designs and current fashion at low
prices, especially distributed in department stores and supermarkets.
Retail Level
There are three types of clothing retailers: Vertically-integrated Retailers; Independent Retailers; and
Department Stores.
Vertically-integrated retailers operate wholly-owned retail outlets and sell only the clothing
brand of that company, e.g., River Island, Topshop, Wallis and Warehouse. Verticallyintegrated retailers tend to have an international presence. Many high range designer brands,
middle range high street brands and low cost brands are vertically integrated. They are
located on main streets and in shopping centres; in addition high range designer brands and
middle range high street brands sell their clothing ranges in department stores. Some
vertically integrated grocery retailers, such as Wal-Mart, Marks & Spencer, and Carrefour also
feature in this category.
Independent retailers sell a selection of brands and are independent of the brands they sell.
Independent retailers can take many forms. Their stores tend to sell middle range high street
brands, however some may sell high range designer brands. Independent retailers tend to
specialise in one type of clothing, such as ladies clothing, bridal, sports clothing, or
menswear, and generally provide their customers with more choice and variety for those
categories. Independent retailers may own and operate a chain of stores under a common
fascia and are typically known as branded resellers. Other independent retailers may be
small local boutiques. Independent clothing stores are mainly located on the main shopping
street in towns and cities and in shopping centres.
89
Department stores are quite different. They sell a wide variety of products from clothing to
home-wares, and electrical appliances to cosmetics. In terms of clothing, department stores
tend to sell high range designer brands and/or middle range high street brands; low cost
brands are rarely sold in department stores. Department stores are generally located in
central locations in cities and large towns.
A department store is a hybrid retailer. As detailed in subsequent paragraphs, branded
clothing is available in their stores from vertically-integrated companies locating in the store
through a concession arrangement and/or is own-bought and resold by the stores
themselves. A few department stores also sell own-brand clothing labels. For example,
Dbut is a Debenhams own-brand clothing line.
Concession arrangements occur where vertically-integrated branded clothing companies
have an agreement to sell in a dedicated area of a department store. Many of these are the
same brands sold in high street vertically-integrated stores. In effect, the department store is
the concessionaires landlord and earns a rent or commission from the concession.
Therefore, the department store has less risk as it does not own the concessionaires stock,
i.e., it is not a reseller. However, a department stores commission is affected by fluctuations
in sales. The actual stock and the profit from sales, excluding the commission, belong to the
concession, i.e., the vertically-integrated brand.
Own-bought clothing is branded clothing purchased by the department store from the
manufacturer or its agent or distributor for resale. For own-bought clothing the department
store bears the risk. Own-bought retailing is therefore similar to the arrangement described for
independent stores, where a selection of brands is sold in the same store; the difference
being that independent stores typically specialise in one type of clothing, whereas department
stores sell different types of clothing, i.e., menswear, ladies wear, childrens clothing and so
on.
Although clothing may be retailed through department stores under different arrangements, it
is not obvious to the consumer which brands operate under each arrangement, i.e., whether
the brand is sold under a concession or own-bought arrangement, as their presentation is
seamless. The percentage of clothing that is own-bought versus concession varies across
department stores. In general, mens clothing tends to have more own-bought arrangements.
Nature of Competition
Clothing retailers compete in a variety of ways. Retailers compete in terms of brand, value, and
location.
Brand Competition
At the retail level brand competition tends to differ by type of clothing retailer. Vertically-integrated
international brands compete at a high level by promoting their branded product internationally.
Independent retailers and department stores compete through the range of brands and products they
stock in their stores, and by building store image. In order to get the brands they want into their store,
department stores further compete on the commission rate, location in store and merchandising.
Branded reseller chains, for example, sports retailers, also compete on store reputation through store
90
Value
Retailers within the same clothing categories compete on value, i.e., the combination of price, design
and quality. Clothing retail competition tends to start with competition among different brands within
the same range, be it high range, middle range or low cost. Once a brand positions/markets itself
within one of the clothing categories, it competes mostly with other brands within the same range by
pricing at a level that reflects the quality, design and brand image that has been created.
In terms of pricing, vertically-integrated retailers operate a system of national pricing and thus at a
retail level compete more on quality of service, shop fit etc. Vertically-integrated brands are
increasingly also offering on-line shopping.
Low cost brands primarily compete on price by offering contemporary design and current fashion at
low prices. The ultimate goal of these brands is to set their prices low. Consumers are looking for
value for money when purchasing these brands.
Location
Location is of critical importance in clothing retail. In most countries, despite the growing number of
out of town shopping centres, the main street is still a major draw for clothing retail. Thus, there is
demand and competition among all clothing retailers for prime main street locations.
Vertically-integrated international clothing brands sold throughout the world and the outlets of these
brands are similar in design and layout. Independent retailers and department stores can differ
somewhat in different areas.
Although the international brands are the scale in each country is often quite different. Retailers
operating in the some countries tend to have larger selling areas and therefore can offer a broader
product range.
Supply Chain
The supply chain and, in particular, distribution for each type of clothing retailer and supplier, tends to
vary. Vertically-integrated branded companies supply clothing internally to retailers, while other
branded clothing companies supply clothing through wholly-owned wholesalers, agencies or third
party distributors.
Clothing is typically designed by the brands themselves and manufactured mostly in the Far East, and
sometimes in Europe or South America. In certain instances, the manufacturer is owned and operated
by the brand and in other instances it is outsourced by the brand. Some brands use buying teams or
91
groups to source their products around the world and are not aligned to, or contracted, with any
manufacturer; they may also have different buying teams for different markets. Occasionally, brands
outsource part of their manufacturing operations to distributors.
Vertically-integrated branded retailers and concessions in department stores source their product
from their parent company. Vertically integrated brands internalise the supply, wholesale and retail
aspects of their supply chains. The retailers and wholesalers are part of the branded company and
operate under the instruction of the parent company. The brand supplies its products to its stores and
concessions in department stores. There is no intermediary or third party involved in the supply chain.
For example, River Island and Topshop operate a vertically-integrated supply chain.
Own-bought clothing suppliers to independent stores and department stores, use wholly-owned
distributors, agencies and/or third party distributors in each country. Which avenue a supplier takes
ultimately depends on how the branded company wishes to operate its distribution and the benefits or
service each distribution type can offer.
Large multinational brands tend to have wholly-owned wholesalers based in the larger countries.
Some brands have two separate wholly-owned wholesalers for each trading cell; others have one
wholly-owned wholesaler for the two jurisdictions. In some cases, rather than an office, the brand has
a country representative, an employee of the brand, to manage the supply. Most wholly-owned
wholesalers use selective distribution arrangements, i.e., supply to a number of different independent
stores and department stores. For example, a wholly-owned wholesaler may supply that brands retail
chain plus to other distribution chains. In the case of some brands, there may be an exclusive
distribution arrangement whereby one retailer and its stores, or a chain, receives exclusivity for the
product in the country.
Some brands distribute through independent agents. The agent places the order to the brand on
behalf of the retailer and receives a commission in return for placing the order. The agent does not
buy the product and, therefore, in some sense the agent is an arm of the brand. Retailers may
negotiate terms and prices either with the agent or the branded supplier; at what level the retailer
negotiates terms varies depending on retailer size. Most agents distribute more than one brand.
Branded companies and retailers tend to prefer not to deal with a middle man, therefore, these types
of agency agreements are rarely found in the market.
Some brands distribute their product through third party distributors. Third party distributors buy
products from the brand and resell it to retailers in the country, i.e., they are the customers of the
brand and have an account with them. Therefore, third party distributors take on a business risk. For
example, Distribution downstream to the retail level can be either an exclusive or selective
arrangement. However, given the preference of not dealing with a middle man distributors are rarely
found in the market. Most of the brands sold through third party distributors are lesser known brands.
Nature of Competition
Ultimately suppliers compete for consumer demand by building brand awareness and through
interactions with retailers. However, clothing suppliers compete mostly at the brand level. Brand
competition is a critical feature of clothing competition at supply level. Brands compete by establishing
a brand that reflects the image and clothing category in which they wish to operate; high range,
middle range or low cost. They will also price their product in a way that reflects the clothing category
and brand image they have created. Where they sell through independent retailers and department
stores, they generally choose retailers whose own image is aligned to that of the clothing brands
image.
92
High range brands compete with each other by establishing a desirable brand through fashion shows,
sponsoring big international entertainment events etc. Fashion weeks, held in many different cities,
are important events for high range brands. In the fashion industry designers compete with each other
to try to take the lead on the seasons fashion trend, i.e., be the trend-setter.
Department stores usually use wholly-owned distributors.
Middle range brands compete with each other through advertising, sponsoring different events, or
selling celebrity fashion lines using celebrity fashion icons to represent the brand. For example,
Topshop stocks a Kate Moss range and sports brands such as Nike, Adidas, and Puma compete
through advertising and using well-known sportsmen and women to represent the brand; they also
sponsor different sports events and/or teams to promote their brand image and awareness.
Suppliers to low cost retailers (i.e. manufacturers in the Far East and South America etc.) compete on
price and quality
Agencies compete by providing competitive commissions to the brands. Third party distributors also
compete with each other, by the services they offer, guaranteed sales volume and other commercial
activities.
Suppliers also compete in their interactions with retailers, in terms of space, commission, and location
in the store. For example, concessions in department stores will compete for the best location in the
store, i.e., where there is the most footfall. Suppliers also compete to have their products sold in the
signature stores in a city.
93
Retailer Reaction
The exchange rate fluctuations and the global recession have occurred simultaneously and it is
therefore not clear how much of the decline in sales is attributable to the recession and how much to
the exchange rates.
In response, retailers have tried to cut costs by reducing the cost of doing business and the cost of
product. They have reduced the cost of doing business by reducing opening hours, working hours and
pay.
With respect to cost of product, retailers can either try to renegotiate a price with their supplier, switch
supply by switching brands, or by-pass the current branded supplier and source product from an
alternative supplier.
The extent of exchange rate pressure and reduced footfall has driven retailers to go back to their
suppliers, be it the manufacturer, wholly owned wholesalers, third party distributors or an agency,
requesting price reductions. Renegotiating prices with suppliers may be difficult due to the seasonality
of clothing retail and limited buyer power of stores in some countries.
Generally, retailers organise their stock for at least the following two seasons, or perhaps even for the
coming year. Thus retailers decide on their stock and volume of purchases between six months to a
year in advance; simultaneously price for the product is agreed typically in US$. In addition, in order
to minimise currency risk, some retailers may hedge their currency at that time. Thus, due to these
agreed prices and volumes, retailers are finding it difficult to renegotiate price with their suppliers.
Retailers will, at the time of agreeing price with their supplier, set their retail prices. Given that this
may be done a number of months in advance, by the time product appears on the shelf, exchange
rates may have changed. This effect should diminish as retailers purchase the next round of stock
which will be based on more recent exchange rates.
The ability of a retailer to negotiate price reductions will depend also on its importance to the supplier,
i.e., the extent of its buyer power. National retailers are often small in international terms.
Switching brands may not be a possible option if the brand is a must have brand for the retailer, for
example, consumers expect all sports stores to have certain international sports brands. It will
negatively affect the retailers image if it does not have the must have brands for certain categories of
clothing.
Retailers, independent stores and department stores contend that sourcing product by by-passing the
current source of supply, i.e., the wholly-owned wholesaler, third party distributor or agency, is
difficult. They state that the head office or equivalent regional distributor will direct the retailer back to
the designated national distributor. Most international brands use wholly-owned wholesalers, thus the
alternative source of supply is simply a different arm of the same company. In some cases retailers
have been successful in renegotiating the currency in which they pay, but in most cases this has been
refused.
Retailers attempts to get better prices following currency depreciation may be more difficult in some
countries. Some retailers that operate in several countries may be able to benefit from sourcing
product for their stores in one country through their supply chain in another country. Thus, any
potential benefits arising from the changes in one currency may be spread evenly across that retailer
outlets.
For department stores and independent retailers, alternative sources of supply, such as the grey
market, may be an option. However, product from the grey market is seldom the latest fashion and
94
may be limited in the range and sizes it comes in. It also has limitations in terms of consistency of
supply, and thus may not be an adequate option.
The individual stores of vertically-integrated middle range retailers do not have any alternative option
to source product, as they must source their product internally. Prices in these stores are not set by
the retailer but the head office of the brand and therefore they are constrained by the controlled
supply channel in which they operate. These vertically-integrated brands are large international
brands that operate on a large scale. Any national market is likely represents only a small portion of
their overall business.
Some low cost retailers are not experiencing as much difficulty in switching sources of supply as
independent stores or department stores. This is due to the fact that they tend to be verticallyintegrated and are not aligned with any one supplier but instead they source manufactured product
from the Far East based on the best price, design, quality and range. These low cost retailers market
themselves on price.
Despite the constraints faced by some retailers, they are reacting by re-pricing clothing, increasing
sales/discounts and promotions, and trying to source new products that have more attractive price
and quality characteristics.
Supplier Reaction
Suppliers responses to increased pressures from retailers to reduce prices will depend on their ability
and willingness to reduce prices.
Distributors of brands under pressure from retailers to reduce prices will themselves be limited in their
ability to reduce prices to the extent that they can renegotiate a price reduction with their upstream
supplier. Brands source product directly from their own, or contracted, manufacturers. This is often
done in the Far East or other countries and therefore they operate in a number of currencies. Supplier
costs are therefore largely in various exchange rate susceptible currencies. In reality, national
suppliers may have a small portion of costs in their own currency and may not be able to pass on the
current expectation that exists in the market.
In addition, branded clothing companies tend to be vertically integrated upstream through contracted
manufacturers and downstream through wholly-owned retailers and/or distributors; due to this tight
distribution arrangement, the seasonality, and likely hedging aspects of suppliers operation, the
extent to which they can quickly react to changes in currency fluctuations will be limited.
Overall, suppliers are being negatively affected by falling sales and the depreciation of operating
currencies and therefore they do not want to lose revenue in the market as well. Some retailers stated
that the currency depreciation warranted a price increase in their country but that branded companies
would find it difficult to increase prices in that country because of recessionary pressures.
The bigger the market, the riskier it is to increase prices. In addition, branded companies tend to
operate across a number of countries.
95
Conclusion
Differences in price level between different national markets have to some extent always been
present, and changes in the differences in price level arise, amongst other reasons, due to currency
movements. Since 2008 clothing and footwear prices in one country have fluctuated in comparison
with other countries. The effect of the pricing changes is driving consumers to change their shopping
behaviour to the detriment of the majority of clothing retailers. Low cost clothing retailers however
have not been as negatively affected; what they may have lost in terms of reduction in consumer
spending they have gained from price conscious consumers switching to them. Among other things,
retailers have responded by increasing sales/discounts and promotions, and in some instances reticketing items to bring down in price.
However, the extent of the response of retailers is limited by the extent to which they can reduce their
costs of doing business, for example, reducing opening hours, and their cost of product. The ability to
reduce cost of product is constrained by three elements; the seasonality of the clothing market, limited
buyer power and the ability to switch sources of supply.
Clothing stock and prices are determined six to 12 months before they appear in store. In most
countries retailers are relatively small internationally.
Low cost retailers can easily switch sources of supply, though with a time lag. They are not aligned
with any particular manufacturer and source product based on a mixture of quality and low price. If
they are not happy with supply they will source it from elsewhere.
At the other end, vertically-integrated retailers operating in some overseas countries cannot switch
supply and are constrained by the parent companys distribution arrangements. The stock available to
these stores is purchased centrally; their ability to switch will depend on how quickly they can
renegotiate price with their manufacturer or find another source of supply elsewhere.
Clothing retailers who resell a range of brands (independent retailers and department stores) also
have limited ability to switch supply and find identical product elsewhere. They also have long term
relationships with brands which they need to maintain. They are thus seeking price reductions from
suppliers.
The extent to which these retailers can negotiate lower prices is dependent on their buyer power.
Department stores and branded resellers may be able to source supply in favourable currencies
through their international operations. In some instances locally-operated retailers have been able to
switch to paying in a different currency but in the main they have not. Thus locally operated retailers
may be temporarily disadvantaged compared to international retailers.
The instability of the exchange rates has had a significant impact on clothing retail in many countries.
International brands which manufacture outside the country will likely adjust their forthcoming
seasons prices in line with the currency fluctuations.
Clothing brands differentiate themselves in terms of price, quality and design. The clothes are
generally manufactured in mainland Europe and the Far East. The depreciation in the value of some
currencies and the recession have led to a fall off in demand for clothing generally, though low cost
retailers appear to be benefiting from consumers switching to them from more expensive brands.
Retailers have responded by increasing sales/discounts and promotions, and in some instances by
re-ticketing items to bring down the price. The extent to which clothing retailers may reduce prices is
dependent upon the extent to which they can reduce their costs.
96
Their ability to reduce the amount they pay for the products they sell is constrained by three elements;
the seasonality of the clothing market, limited buyer power and the ability to switch sources of supply.
Seasonality in the Clothing Market: The prices paid by retailers to suppliers for clothes were
set six to twelve months ago and renegotiating those prices is difficult, though retailers have
indicated that they have had some limited success.
Limited Buyer Power: The extent to which retailers can negotiate lower prices is dependent
on their buyer power. Stores that have access to stock through related overseas stores have
slightly more scope to access products at lower prices. In some instances retailers have been
able to switch to paying in other currencies but in the main they have not.
Switching Sources of Supply: The ease with which clothing retailers may switch to alternative
better-value sources of supply depends upon the type of clothing that they retail. Low cost
retailers can most easily switch sources of supply, though with a time lag (due to seasonality).
Such retailers are not so aligned with any particular manufacturer. The supply chains of the
mid-range retailers who operate wholly-owned retail outlets and sell a single clothing brand,
e.g., River Island, Topshop, Wallis and Warehouse, are far less flexible. These retailers tend
to have an international presence; purchasing and distribution arrangements for the outlets in
any particular country are typically determined centrally. Clothing retailers who resell a range
of brands (e.g. sportswear stores and department stores) also have limited ability to switch
sources of supply. Such retailers argue that they have long-term relationships with branded
clothing suppliers which they need to maintain. Alternative sources for a particular brand
cannot be relied on to come in the full range of sizes or colours or to be from the current
season. A notable feature of clothing retail is the apparent low level of alternatives for many
retailers. With the exception of low cost clothing, competition in clothing is largely about
branding and image, within a particular price/quality range. Thus, it is difficult for stores with
on-going relationships with brands to switch to alternative brands. As the seasons roll on and
the seasonal pattern of sales continues, all brands have the opportunity to set national prices
in a way that reflects more recent exchange rates.
97
98
99
100
101
102
103
Start-up Costs
Start-up Costs, Initial Investment and Product Launch Balance sheet
Direct and Indirect Market Entry
There are three scenarios examined in the data below, A Brand / Franchise Store launch, and Indepe
ndent Store launch (probably carrying Branded product lines) and the use of a Distributor or Exclusive
Wholesaler to introduce a new Brand to the country concerned.
Inventory Costs
The Start-up costs data excludes the initial Inventory investment. This is because there are a large
number of ways in which Franchised Brands, Independent Retailers, In-Store Departments and sales
via Distributors are financed.
Some Franchised Brands offer Consignment deals, or Sale-or-Return deals, or inventory financing.
Similarly there are inventory financing deals available for In-Store Departments.
104
Rental Month 1
Property Deposit
Store fitting
Business Expenses
IT Equipment &
Services
Marketing
Cash-in-Hand
62416
62416
90000
1533
7541
3473
4223
987
3353
9122
3762
18100
266926
Bangladesh
1937
1937
8000
212
888
371
548
133
277
865
332
1500
17000
Cambodia
2180
2180
7500
146
623
287
395
106
256
597
277
1480
16027
33000
33000
13000
289
1162
515
743
144
390
1074
448
2053
85818
101833
101833
90000
2300
10248
3529
5939
1096
3566
8516
3156
16898
348914
11700
11700
12000
272
1074
575
608
167
385
1034
404
1974
41893
5600
5600
9000
207
855
416
511
102
256
865
365
1678
25455
Japan
73500
73500
95000
1873
9789
3144
4376
1205
2962
8060
3447
15401
292257
Malaysia
34000
34000
20000
499
1708
813
1236
306
665
2043
833
3916
100019
New Zealand
13466
13466
40000
789
2961
1303
2266
469
1287
3423
1411
6160
87001
Philippines
2025
2025
8000
154
575
347
437
83
225
588
273
1365
16097
Singapore
30000
30000
35000
836
3907
1720
1861
421
1112
3192
1521
7404
116974
South Korea
31333
31333
55000
1092
4462
2652
3090
646
1749
4992
2058
8638
147045
100 SqM
selling space
US$
Australia
China
Hong Kong
India
Indonesia
Sri Lanka
2430
2430
7500
156
747
277
479
104
252
729
253
1283
16640
23000
23000
35000
869
3244
1576
2415
475
1378
3492
1458
6417
102324
Thailand
9450
9450
9500
162
863
356
469
114
296
885
361
1777
33683
Vietnam
18166
18166
9000
204
863
419
553
131
337
882
392
2073
51186
Taiwan
105
Rental Month 1
Property Deposit
Store fitting
Business Expenses
IT Equipment &
Services
Marketing
Cash-in-Hand
Total Independent
Store Start-up Cost
56000
56000
51150
1133
2366
2466
2775
888
2755
7332
2553
11100
196518
Bangladesh
1979
1979
5640
135
309
282
326
98
255
711
217
932
12863
Cambodia
2180
2180
5000
103
195
239
252
87
187
499
167
857
11946
36333
36333
6960
166
306
340
403
116
348
906
304
1420
83935
106166
106166
57850
1365
2600
2710
3410
1290
2637
7798
2594
11544
306130
10125
10125
8000
192
357
355
492
145
316
906
293
1194
32500
5425
5425
5940
140
263
322
357
111
252
567
225
1017
20044
Japan
78750
78750
48600
1297
2116
3093
2936
1259
2704
6478
2172
8960
237115
Malaysia
32333
32333
12180
282
487
665
762
219
603
1381
519
1977
83741
New Zealand
13866
13866
21840
538
991
946
1247
476
865
2687
935
4310
62567
Philippines
2340
2340
4300
110
255
266
272
69
225
566
176
807
11726
Singapore
35000
35000
25000
535
1290
1087
1299
460
901
2966
847
4540
108925
South Korea
36333
36333
31850
850
1340
1820
2030
582
1262
3452
1137
6357
123346
100 SqM
selling space
US$
Australia
China
Hong Kong
India
Indonesia
Sri Lanka
2317
2317
4900
111
178
195
302
79
217
526
190
867
12199
24750
24750
21580
621
1297
1084
1456
444
1054
2599
1062
3987
84684
Thailand
8400
8400
5400
144
255
255
336
86
228
559
228
859
25150
Vietnam
15333
15333
6650
139
322
301
339
98
269
811
246
1257
41098
Taiwan
106
Rental Month 1
Deposit
Store fitting
Business Expenses
IT Equipment &
Services
Marketing
Cash-in-Hand
18666
18666
18012
455
1776
956
1121
356
1154
2665
1887
6554
72268
Bangladesh
526
526
1980
62
197
109
145
36
110
235
154
543
4623
Cambodia
575
575
1850
50
154
102
101
38
82
169
144
464
4304
9166
9166
2660
84
250
154
164
54
132
302
233
724
23089
27354
27354
20800
591
2056
1276
1642
357
1009
2614
1806
6119
92978
India
3459
3459
2540
75
286
152
179
45
151
313
214
772
11645
Indonesia
1604
1604
2055
60
189
96
121
46
98
232
183
521
6809
22312
22312
19800
595
1569
1011
1210
380
994
2064
1688
5219
79154
Malaysia
9750
9750
4585
142
506
245
308
115
264
590
422
1167
27844
New Zealand
25 SqM
selling space
US$
Australia
China
Hong Kong
Japan
3433
3433
7860
232
813
425
626
175
407
953
691
2059
21107
Philippines
669
669
1837
41
167
102
112
38
76
201
126
530
4568
Singapore
9833
9833
8625
262
912
438
657
192
409
860
703
2353
35077
South Korea
8750
8750
12687
312
1197
608
841
253
624
1305
1008
3628
39963
680
680
1637
46
177
92
116
29
76
218
126
500
4377
Taiwan
7000
7000
7930
262
688
542
625
180
441
881
669
2788
29006
Thailand
2712
2712
1995
48
197
88
156
43
110
229
158
571
9019
Vietnam
4750
4750
2520
71
192
104
145
48
116
295
199
742
13932
Sri Lanka
107
IT Services
Banking
Marketing Support
Public Relations
Miscellaneous
Distributor / Exclusive
Wholesaler Sign-up
Australia
1886
3866
2544
2887
3654
6554
2443
2544
26378
Bangladesh
183
396
277
381
298
507
197
238
2477
Cambodia
176
305
279
238
288
428
166
189
2069
China
246
590
436
432
387
743
305
266
3405
Hong Kong
2006
5437
3156
3991
3411
6893
2425
2675
29994
India
293
562
455
470
473
781
319
277
3630
Indonesia
178
485
302
355
358
543
191
249
2661
Japan
2036
4133
3247
3558
3587
6005
2132
2275
26973
Malaysia
571
1102
686
720
762
1267
522
472
6102
New Zealand
790
1619
1321
1410
1291
2287
831
810
10359
Philippines
166
291
268
341
235
500
168
208
2177
Singapore
745
1968
1341
1679
1444
2264
843
901
11185
South Korea
1116
2755
1554
2388
1883
3378
1197
1197
15468
Sri Lanka
142
281
291
293
269
500
162
168
2106
Taiwan
945
1900
1274
1405
1554
2757
900
1034
11769
Thailand
201
438
280
368
283
600
191
208
2569
Vietnam
271
442
314
411
358
725
242
252
3015
US$
Business Expenses
108
Initial Contractual
Negotiations
Premises Acquisition
Regulatory
Requirements
Store fitting
Systems Installation
& Staff training
Launch Delay
Total Time
Australia
12
32
Bangladesh
14
42
Cambodia
14
46
China
12
42
Hong Kong
10
30
India
14
44
Indonesia
12
33
Japan
13
33
Malaysia
10
39
New Zealand
11
30
Philippines
14
39
Singapore
13
31
South Korea
11
29
Sri Lanka
14
43
Taiwan
14
34
36
43
Weeks
Thailand
Vietnam
14
4
The data above is derived from trade surveys.
109
Initial Contractual
Negotiations
Premises Acquisition
Regulatory
Requirements
Store fitting
Systems Installation
& Staff training
Launch Delay
Total Time
Australia
24
Bangladesh
29
Cambodia
36
China
28
Hong Kong
20
India
28
Indonesia
23
Japan
22
Malaysia
31
New Zealand
19
Philippines
25
Singapore
23
South Korea
21
Sri Lanka
29
Taiwan
22
Thailand
26
Vietnam
30
Weeks
110
Total Time
Systems Installation
& Staff training
Marketing Support
Regulatory
Requirements
Financial
Arrangements
Weeks
Initial Contractual
Negotiations
Australia
24
Bangladesh
30
Cambodia
36
China
30
Hong Kong
22
India
32
Indonesia
24
Japan
20
Malaysia
34
New Zealand
22
Philippines
28
Singapore
23
South Korea
25
Sri Lanka
32
Taiwan
25
Thailand
29
Vietnam
28
111
5 Outlets
10 Outlets
Single Store
145
6
6
64
217
25
13
167
69
38
6
67
76
6
55
20
36
150
6
6
64
221
24
14
170
67
38
6
68
78
7
57
19
36
196
12
11
83
306
32
20
237
83
62
11
108
123
12
84
25
41
122
5
5
74
225
21
12
170
67
33
5
73
81
5
56
18
32
114
5
5
64
202
19
11
157
61
32
5
70
73
5
49
16
29
109
5
5
57
183
19
10
144
55
30
5
65
68
5
47
15
26
72
4
4
23
92
11
6
79
27
21
4
35
39
4
29
9
13
10 Outlets
3 Outlets
144
6
6
66
225
25
13
170
73
37
6
67
74
6
55
21
39
5 Outlets
Single Store
266
17
16
85
348
41
25
292
100
87
16
116
147
16
102
33
51
3 Outlets
10 Outlets
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
The Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
5 Outlets
US$
000
Brand In-store
Start-up 25SqM
3 Outlets
Per outlet
Independent Store
100SqM
Single Store
Brand Store
100SqM
45
43
42
18
62
7
3
49
20
9
17
61
7
3
50
20
9
17
59
7
3
47
18
10
21
21
1
16
5
10
22
21
1
16
6
9
21
21
2
16
5
9
The data indicates that the cost savings from economies of scale are somewhat variable. This is
undoubtedly due to the fact that the practice of the opening of multiple outlets is not consistent
because the companies undertaking these enterprises are very variable in their nature and
organisation.
It is the case that the major companies do enjoy significant economies of scale, but these are based
on multiples of several hundred locations. Furthermore, whereas the brand owned outlets may enjoy
such economies of scale the brand owner may not always pass on the entire volume saving to any
franchisee. Thus the unit cost of shop fittings and furnishings for a 3 store franchisee may only be
reduced fractionally if that franchisee were to open 5 stores.
There are some cost savings evident in respect of the shop fitting costs where more than one store is
involved, and also in the budget for cash-in-hand; however the cost savings for the other
components are not significant and will depend on the negotiation ability of the entrepreneur more
than on any actual reductions for volume.
112
Cash Flow, Profit & Loss, Balance Sheet, Project Financial Analysis
The Toolkit contains the following spreadsheets to enable users to produce:Start-up financial data is shown above and this forms both the Fixed Capital and Working Capital for
the start-up.
The format of this balance sheet is based on U.S. accounting standards.
See: http://www.datagroup.org/PureData/Base_PureData/Ch_Chapters/Ch_FIN_DEFI.htm
http://www.datagroup.org/BASE_FOLDERS/xls/CASH_FLOW.xls
CASH FLOW FORECAST
Month 1
Fr = Forecast : Ac = Actual
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
1 Revenues
2 Orders
3 TOTAL SALES
Ac
'000
0
0
37 Total Payments
RECEIPTS
4 Sales receipts
5 Sales debtors
6 Loans / Grants received
7 Miscellaneous income
8 CASH ACCOUNT TOTAL
9 Capital
10 Asset & other disposals
11 TOTAL RECEIPTS
PAYMENTS
12 Finished Materials Cost
13 Fuel Cost
14 Electricity Cost
Total Input Materials + Energy
15 Costs
16 Payroll Costs
17 Wages
18 Directors' Remunerations
19 Employee Benefits
20 Employee Commissions
Total Employees
21 Remunerations
22 Total Rental & Leasing Costs
23 Total Maintenance Costs
24 Services Purchased
25 Communications Costs
26 Miscellaneous Expenses
27 Sub Contractors
Total Miscellaneous
28 Operational Costs
29 Total Sales Costs
Total Distribution and Handling
30 Costs
31 Total Advertising Costs
32 Total After-Sales Costs
Total Research and
33 Development Expenditure
34 Interest
Net Taxes & Duties (Value
Import,
etc.) Security,
35 Added,
Tax (Income,
Social
36 etc.)
113
http://www.datagroup.org/BASE_FOLDERS/xls/PROFIT_LOSS.xls
PROFIT & LOSS ACCOUNT
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11Month 12 Year 1
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
1 Domestic Revenues
2 Overseas Revenues
3 Total Revenues
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
0
0
0
0
Fuel Cost
Electricity Cost
Total Input Materials + Energy Costs
0
0
Wages
Directors' Remunerations
Employee Benefits
Employee Commissions
0
0
0
0
0
Services Purchased
Communications Costs
Miscellaneous Expenses
Sub Contractors
0
0
0
0
0
0
0
0
0
Depreciation: Structures
62 Trading Profit
Total Depreciation
0
0
0
0
0
0
Maintenance: Structures
0
0
0
0
Payroll Costs
Year 3
'000
0
0
57 Operating Profit
58
59
60
61
Year 2
'000
0
0
63 Interest Paid
64 Non-trading Income
65 Pre-tax Profit
114
http://www.datagroup.org/BASE_FOLDERS/xls/BALANCE_SHEET.xls
BALANCE SHEET
Year 1
'000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Year 2
'000
Year 3
'000
Year 4
'000
Year 5
'000
Year 6
'000
Year 7
'000
Total Retirements
Total Assets
Creditors
Short Term Loans
Miscellaneous Current Liabilities
Persons
32 Workers
33 Total Employees
115
Persons
Persons
Persons
Persons
Persons
http://www.datagroup.org/BASE_FOLDERS/xls/Project_Financial_Analysis.xls
CASHFLOW DETAILS
Initial Investment=
$150,000
$7,484
DISCOUNT RATE
Revenues in year 1=
$240,000
Approach(1:Direct;2:CAPM)=
50%
10
$100,000
40%
1. Discount rate =
2
10%
2a. Beta
0.9
b. Riskless rate=
8.00%
5.50%
10%
d. Debt Ratio =
30.00%
e. Cost of Borrowing =
9.00%
10.69%
WORKING CAPITAL
Initial Investment in Work. Cap=
$15,000
25%
100%
GROWTH RATES
1
10
Revenues
Do not enter
10.00%
10.00%
10.00%
10.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Fixed Expenses
Do not enter
10.00%
10.00%
10.00%
10.00%
0.00%
0.00%
0.00%
0.00%
0.00%
10
Default: The fixed expense growth rate is set equal to the growth rate in revenues by default.
YEAR
0
1
2
3
INITIAL INVESTMENT
Investment
$150,000
- Tax Credit
$15,000
Net Investment
$135,000
+ Working Cap
$15,000
+ Opp. Cost
$7,484
+ Other invest.
$0
Initial Investment
$157,484
RESIDUAL VALUE
Equipment
Working Capital
OPERATING CASHFLOWS
Lifetime Index
Revenues
-Var. Expenses
- Fixed Expenses
EBITDA
- Depreciation
EBIT
-Tax
EBIT(1-t)
+ Depreciation
- Work. Cap
NATCF
($157,484)
Discount Factor
1
Discounted CF
($157,484)
$0
$0
1
$240,000
$120,000
$0
$120,000
$30,000
$90,000
$36,000
$54,000
$30,000
$45,000
$39,000
1.10685
$35,235
$0
$0
1
$264,000
$132,000
$0
$132,000
$0
$132,000
$52,800
$79,200
$0
$51,000
$28,200
1.225116923
$23,018
$0
$0
1
$290,400
$145,200
$0
$145,200
($4,000)
$149,200
$59,680
$89,520
($4,000)
($38,400)
$123,920
1.356020666
$91,385
$0
$0
1
$319,440
$159,720
$0
$159,720
$0
$159,720
$63,888
$95,832
$0
$7,260
$88,572
1.500911474
$59,012
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$7,986
$97,429
1.661283865
$58,647
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
1.838792046
$57,329
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.035266976
$51,794
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.252735252
$46,794
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.493440014
$42,277
$100,000
$87,846
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.759864079
$106,259
Investment Measures
NPV =
$414,267
IRR =
42.43%
ROC =
75.60%
$150,000
$30,000
$120,000
$120,000
$0
$120,000
116
$124,000
$0
$124,000
$124,000
$0
$124,000
$124,000
$0
$124,000
$124,000
$0
$124,000
$124,000
$0
$124,000
SWOT Analysis
SWOT analysis by type of Market Entry
Weaknesses
Control of Brand
Control of Costs
Control of Profitability
Opportunities
Threats
Local competitors
Weaknesses
Opportunities
Threats
117
Weaknesses
Opportunities
Threats
Weaknesses
Control of Brand
Opportunities
Threats
118
Weaknesses
Opportunities
Threats
Weaknesses
Opportunities
Threats
119
Competitive Analysis
Indonesia Representative Brands
120
121
122
The variability of the political, economic and consumer environment in the Asia-Pacific regions means
that the market potential of the Asia-Pacific region is highly variable and often uncertain. Dynamic
markets like China and India often suffer from infrastructure and regulatory problems which tend to
dull that vitality for overseas investors. The more liberal economies like Australia, Singapore and
Hong Kong suffer from market saturation and aggressive competition. The market penetration
prospects for womens fashion are complex in every Asia-Pacific market.
Asian womens fashion producers have found extreme difficulty in competing with European and
American brands, this is not a question of fashion design or clothes quality, it is simply the fact that
the womens fashion industry is entrenched in Europe and the U.S.A. To succeed in fashion many
Asian designers, like Vivienne Tam and Jimmy Choo, have moved to the U.S.A. or Europe.
Before one can discuss these potential for advancing into these Asia-Pacific markets one needs to
consider some basic concepts.
123
Brand Concept
A brand is defined as: A name, term, sign, symbol, or design, or combination of them, intended to
identify the goods and services of one seller or group sellers and to differentiate them from those of
competitors.
Branding thus is a means to distinguish one product from another and these differences may be
functional, rational, or tangible and fundamentally related to product performance of the brand.
In the Asia-Pacific region a Brand is frequently no more than a European sounding name on a copy
of some European design. This use of facsimiles by Asia-Pacific producers has shown the limitations
of their business models.
It is necessary to distinguish a Brand from a Label. Labels or Own-Brand Labels tend to be generic
or standard products which simply bear the label or identification of a supermarket or some other
retailer. In general labels do not have the same status as brands in the mind of consumers, albeit the
quality and designs may have little differentiation; however consumers expect labels to have lower
price as than brands.
Brand Equity
Brand equity is intangible added value endowed to products and services. This value may be
reflected in how consumers think, feel, and act with respect to the brand, as well as the prices and
price premiums demanded by a brand, market share, and ultimately the profitability that the brand
commands for the firm. Brand equity is an important intangible asset that has image and financial
value to the firm. In the Asia-Pacific region there is no extended history of brand image creation and it
is for this reason that Asia-Pacific companies have to be particularly attentive to the enhancement the
brand equity of their products.
124
Brand Knowledge
Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so forth, that
becomes associated with the brand. In particular, brands must create strong, favourable, and unique
brand associations with the target customer base. Brand knowledge is low in many Asia-Pacific
markets and this presents opportunities to new brands entering those markets.
C1
C2
DE
19-24
25-34
35-44
45-54
55-64
65+
Australia
85
70
58
42
60
49
60
54
45
36
24
Bangladesh
39
36
26
21
27
22
27
24
18
14
11
Cambodia
33
30
25
18
26
19
26
23
17
14
11
China
37
34
28
20
33
21
33
23
22
15
13
Hong Kong
61
57
53
38
54
35
54
38
36
25
19
India
40
37
30
22
31
20
31
22
21
16
12
Indonesia
43
40
29
24
30
25
30
27
20
18
12
Japan
78
72
60
39
55
45
62
49
36
29
24
Malaysia
44
41
38
28
39
29
35
28
26
21
15
New Zealand
76
70
58
47
67
49
60
54
40
32
27
Philippines
48
45
37
27
34
28
38
27
22
18
13
Singapore
55
57
47
34
43
32
43
35
32
23
19
South Korea
62
57
47
39
55
36
49
39
36
26
19
Sri Lanka
36
33
28
20
28
23
32
25
19
17
11
Taiwan
43
40
37
27
34
25
34
27
25
18
15
Thailand
40
41
30
25
35
26
31
28
21
16
12
Vietnam
34
36
30
21
27
20
27
24
20
16
11
Brand knowledge and awareness is assessed during Consumer Surveys when consumers were
asked specific questions to test the strength of their awareness of named brands. The data above is
derived from statistically accurate social / income group, and full age spectrum, surveys.
125
In the Asia-Pacific region insufficient attention has been paid to these issues and this has generally
led to the lack of global competitiveness of Asian-Pacific brands.
126
C1
C2
DE
19-24
25-34
35-44
45-54
55-64
65+
Australia
17
14
11
12
12
10
Bangladesh
Cambodia
China
Hong Kong
12
12
10
10
India
10
Indonesia
11
12
10
Japan
31
25
24
17
24
16
24
19
14
13
Malaysia
15
14
11
10
11
New Zealand
22
23
19
14
20
13
20
14
12
The Philippines
Singapore
11
10
South Korea
12
12
11
Sri Lanka
10
11
Taiwan
12
12
11
11
11
Thailand
16
14
12
12
12
10
Vietnam
6
7
5
4
6
4
6
4
3
3
2
Brand loyalty is assessed during Consumer Surveys when consumers were asked specifically for the
brands they purchased and then specifically if they would purchase the same brand(s) again. The
data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
127
C1
C2
< 19
19-24
25-34
35-44
45-54
55-64
65+
Australia
31
29
27
17
28
20
25
20
18
13
10
Bangladesh
27
25
21
15
24
18
24
17
14
13
Cambodia
26
24
20
14
18
15
20
14
13
11
China
35
29
27
17
24
18
27
19
18
14
Hong Kong
31
25
24
15
21
18
21
19
16
13
India
24
22
18
13
16
12
16
15
11
Indonesia
37
34
28
23
29
24
29
26
21
17
13
Japan
49
45
37
27
34
28
38
27
25
18
15
Malaysia
35
37
27
20
31
20
31
22
18
16
11
New Zealand
54
45
42
27
43
28
38
30
28
20
17
Philippines
35
33
27
19
31
23
31
22
18
16
12
Singapore
32
29
24
18
25
18
22
18
15
12
10
South Korea
32
34
28
20
25
19
29
23
19
13
10
Sri Lanka
29
27
22
16
25
19
23
20
17
12
Taiwan
40
33
30
19
28
23
31
25
21
16
12
Thailand
28
29
24
17
25
16
22
17
16
13
Vietnam
27
22
18
13
19
15
19
17
12
11
7
Perceptions of Brand Quality is assessed during Consumer Surveys when consumers were asked
specifically if they believed that the brands they purchased were of a better product quality than other
or cheaper brands and if in general they believed that expensive brands were of a better product
quality. The data above is derived from statistically accurate social / income group, and full age
spectrum, surveys.
128
Brand
Awareness
Brand Recall
Packaging
Brand
Recognition
User
imagery
Nonproduct
Related
Price
Brand
Knowledge
Brand Image
Brand
Associations
Favourable
Associations
Strength of
Associations
Uniqueness
of
Associations
Attributes
Benefits
Attitudes
129
Product
Related
Usage
Imagery
Brand Resonance
The brand resonance model also views brand building as an ascending, sequential series from
bottom to top.
The Brand Resonance model:
1. Brand Salience relates to how often and
easily the brand is evoked under various
purchase or consumption situations.
2. Brand Performance relates to how the
product or service meets the customers
functional needs.
130
131
Attracted to Local
Brands
Australia
85
76
66
66
76
85
76
66
66
76
Bangladesh
34
34
39
30
39
34
34
30
39
39
Cambodia
37
29
37
33
29
29
29
33
37
29
China
32
32
41
41
37
41
32
32
41
41
Hong Kong
69
53
61
61
69
69
53
69
69
53
India
31
31
31
31
35
31
35
35
35
35
Indonesia
33
33
33
38
33
43
38
43
33
43
Japan
78
61
61
69
69
61
78
78
69
78
Malaysia
50
39
44
50
39
44
44
39
39
44
New Zealand
76
66
85
85
66
66
76
76
85
66
The Philippines
43
43
37
37
37
43
37
37
43
48
Singapore
48
62
62
48
48
55
48
62
62
55
South Korea
62
62
54
54
54
62
54
70
54
70
Sri Lanka
41
41
41
36
41
41
31
31
41
36
Taiwan
43
37
43
37
48
37
48
48
37
48
Thailand
35
45
45
40
40
40
35
35
35
35
Styling
Acceptance
Style
Feelings
Judgments
Imagery
Performance
Salience
Attracted to Global
Brands
Vietnam
30
30
39
30
34
39
39
39
39
30
Brand Resonance is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
Brand Awareness according reflects the extent to which people can either remember or
recognize a brand. When people think about brands in a product category, those come to
mind represent recall brand awareness; they are recalled based only upon a category cue. If
someone is shown a list of brand names or pictures of packages, those that can be identified
represents recognition brand awareness.
132
Brand Salience depends upon awareness, but reflects the relative strength of that awareness
in relation to the target markets awareness of other brands in the category. This relationship
will be reflected in the relative relationship between what is known as top -of- mind
awareness and all the other brands in the category of which someone is aware.
Brand Preference, like brand salience, can be an indicator of the strength of brand equity.
Brands that are preferred are likely to enjoy greater equity than those that are not. Preference
for a niche brand may be high in its market segment, but relatively low in the global market as
a whole.
133
In order to keep or develop the value of the symbolic message of the brand, the brands
image management should be focused on a small number of distinct styles;
The consumer buys or uses fashion products of different types and styles;
An effective fashion image developed through the seasonal collections, allows the brand to
achieve image coherence and to capitalize on it in the market by building a global presence.
The adoption process of fashion brands reflects the significant impact of the popular and
cultural image of fashion that a brand transmits as well as its inherent identification potential
(social, cultural and economic).
Recognizing this, consumers search for fashions that approximates with their own aspirations, needs
and wants; rather than that of the stereotypical people who may have appeared in advertisements
and the media. This is especially the case in markets which have traditionally been less exposed to
global culture. Whereas the upper middle classes in the developing Asia-Pacific countries are
increasingly exposed to global stereotypes, nonetheless the traditional aspects of these markets
frequently outweigh the global imagery.
134
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Australia
100
80
93
100
108
120
90
55
55
45
50
Bangladesh
100
72
93
90
108
108
90
55
55
50
45
Cambodia
100
88
85
90
108
108
81
50
45
50
50
China
100
88
76
110
132
108
81
50
50
50
45
Hong Kong
100
80
76
110
108
132
90
50
55
50
55
India
100
88
85
110
132
120
90
55
50
50
55
Indonesia
100
72
93
110
132
132
81
50
45
55
50
Japan
100
80
85
100
120
132
81
55
55
50
45
Malaysia
100
80
85
90
120
120
81
45
45
55
55
New Zealand
100
80
85
110
120
120
81
45
45
55
50
The Philippines
100
88
93
90
108
108
99
50
45
55
55
Singapore
100
80
85
110
132
108
90
45
50
55
45
South Korea
100
80
76
100
108
132
81
55
45
45
55
Sri Lanka
100
88
85
90
108
120
99
45
50
45
55
Taiwan
100
72
93
110
132
120
99
45
50
50
50
Thailand
100
80
76
90
132
120
81
55
45
50
55
Vietnam
100
80
93
100
132
108
99
50
45
55
55
Consumer confidence is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
Consumer Confidence
Consumer Confidence relates to Spending Attitudes in relation to the general Economic situation; the
definitive gauge of consumer sentiment around economic and social concerns across countries.
After periods of speculation and uncertainty around the economic conditions, at some stage
consumers reach a state of resignation to the economic realities and the majority will then usually
adopt rational spending levels for various product groups.
Consumer confidence worldwide often fluctuates wildly as relatively uninformed consumers attempt to
make sense of media coverage of economic circumstances, the propaganda of their political masters,
and their own empirical experience of the situation.
In terms of the consumption of consumer products, the net effect is the changes in the propensity for
consumers to save rather than spend.
In the Asia-Pacific region, as in the rest of the world, consumer confidence has fallen to its lowest
level in many years. The Asia-Pacific region, and more particularly China and India are not forecast to
survive the current economic recession any better than the USA or Europe.
135
136
By contrast there are factors which tend to differentiate, and often limit, many Asia-Pacific markets:
1. The relatively high portion of disposable income spent on Food and Housing.
2. The relative pricing of branded fashion products.
3. The effectiveness and physical distribution of retailers, especially in large countries with
limited infrastructure.
4. The pressure on the gross margins and therefore the profitability of the entire supply and
distribution chain.
5. The difficulty for large scale retail operations and multiples to realise a good level of
profitability.
6. The national shopping habits of consumers which sometime inhibit the impulse buying of
garments.
7. The influence of family and cultural imperatives on the younger consumer age groups whom
tend to represent the major segment of the branded fashion market.
8. Consumer attitudes and influences when shopping as a family group as opposed to shopping
individually or with peer group.
137
Work
Everyday
Special occasion
Work
Everyday
Special occasion
25 + Years old
Australia
13
11
44
10
22
19
14
17
21
29
Bangladesh
15
12
14
15
44
20
16
22
16
26
Cambodia
10
11
35
12
32
19
19
22
10
30
China
11
15
17
25
32
18
17
28
16
21
Hong Kong
10
15
39
10
26
20
18
27
12
23
India
12
12
13
16
47
19
14
20
16
31
Indonesia
13
12
23
18
34
16
19
29
14
22
Japan
12
12
36
15
25
17
19
25
14
25
Malaysia
11
14
14
23
38
19
12
25
22
22
New Zealand
12
11
41
12
24
20
10
30
20
20
The Philippines
13
13
30
10
34
15
18
26
19
22
Singapore
12
12
42
13
21
20
18
28
13
21
South Korea
12
29
24
27
19
10
33
12
26
Sri Lanka
13
14
11
14
48
20
18
10
13
39
Taiwan
11
14
26
16
33
19
17
26
12
26
Thailand
10
14
32
14
30
15
15
29
17
24
Vietnam
12
10
29
19
30
20
12
30
18
20
Usage & Purpose of clothes purchases is assessed during Consumer Surveys when consumers were
asked specific psychometric questions which tested and cross-checked the issues mentioned here.
The data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
11. Perception of Designer v- Standard / High Street Brands. In Asia-Pacific markets there are
growing perceptions that Designer Brands do not offer any particular quality benefit over
Standard / High Street Brands.
12. There is a general dislike of Internet shopping in Asia-Pacific countries.
13. In urban areas, amongst the middle classes, 40% of consumers were aware of fashion
brands from newspapers, 25% of consumers were aware of fashion brands from magazines,
and 23% of consumers were aware of fashion brands from Television and Films.
138
Celebrity endorsement
Celebrity endorsement (Actors / Sports stars / Models / Movies Stars) importance is assessed
during Consumer Surveys when consumers were asked specific psychometric questions which
tested and cross-checked the issues mentioned here. The data above is derived from statistically
accurate social / income group, and full age spectrum, surveys.
139
International Brands
Local Brands
Planned Buying
Impulse Buying
Convenience
Brand name
Design
Quality
Australia
63
60
38
44
22
22
52
49
28
Bangladesh
78
48
30
39
18
18
65
61
19
Cambodia
82
39
37
29
17
13
68
73
18
China
78
42
30
30
14
18
65
70
19
Hong Kong
70
60
44
44
15
18
57
62
28
India
84
45
33
37
13
13
69
65
18
Indonesia
90
42
26
30
14
14
83
70
22
Japan
63
60
38
38
17
17
58
63
24
Malaysia
90
42
30
34
14
15
74
70
17
New Zealand
63
67
49
38
22
17
58
56
31
The Philippines
78
54
39
39
18
14
65
70
22
Singapore
70
60
44
34
18
18
65
70
25
South Korea
66
64
36
47
19
21
54
58
23
Sri Lanka
84
39
33
28
15
16
69
74
21
Taiwan
74
57
32
37
17
17
61
74
20
Thailand
84
39
37
28
15
15
69
84
23
Vietnam
96
39
25
32
13
11
80
75
15
Purchasing Criteria and Habits are assessed during Consumer Surveys when consumers were asked
specific psychometric questions which tested and cross-checked the issues mentioned here. The
data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
Brand Selection
Consumers who purchase fashion products from Exclusive brand outlets tend to visit the store
specifically because they are attracted to that brand, not for reasons of brand comparison.
In multi-brand outlets the majority of women select and purchase a particular brand because of the
shopping experience. Overall preference for one brand over another is based on the shopping
experience generated by the chosen brand.
140
Price
Brand Loyalty
Advertising offers
Loyalty Card
Presents
In Store Promotions
Press Advertising
Store Merchandising
Product Packaging
Promotional Staff
Purchase Drivers for Younger Buyers : < 19 and 19-24 Years Old
Australia
80
52
45
38
36
31
36
32
22
10
Bangladesh
70
36
41
35
25
28
25
25
14
Cambodia
60
39
44
29
27
30
23
21
17
China
64
41
36
30
28
32
28
22
18
Hong Kong
72
46
40
39
32
32
28
28
18
10
India
66
39
43
28
30
23
23
27
13
Indonesia
61
40
40
26
22
25
22
19
12
Japan
72
52
45
49
31
40
40
28
20
12
Malaysia
50
31
36
30
22
25
22
19
12
New Zealand
72
52
58
38
31
40
40
28
17
12
The Philippines
64
41
36
30
25
28
25
22
18
Singapore
72
52
52
34
36
32
36
28
20
10
South Korea
68
49
43
47
38
38
38
30
16
11
Sri Lanka
54
34
43
28
27
27
27
24
16
10
Taiwan
68
49
38
32
26
34
30
30
19
11
Thailand
60
34
43
37
27
30
27
21
16
10
Market
Vietnam
57
38
38
28
20
20
23
20
13
6
Purchase Drivers are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
141
25 + Years old
Australia
68
32
43
34
23
79
21
36
39
25
Bangladesh
58
42
50
30
20
75
25
32
32
36
Cambodia
57
43
44
37
19
75
25
37
40
23
China
73
27
44
35
21
84
16
39
33
28
Hong Kong
70
30
47
34
19
84
16
37
38
25
India
70
30
47
34
19
83
17
39
32
29
Indonesia
64
36
46
38
16
80
20
38
32
30
Japan
73
27
41
30
29
81
19
31
35
34
Malaysia
70
30
42
34
24
82
18
33
34
33
New Zealand
69
31
47
32
21
80
20
37
31
32
The Philippines
61
39
45
31
24
83
17
36
38
26
Singapore
73
27
45
40
15
81
19
34
40
26
South Korea
71
29
42
38
20
75
25
37
34
29
Sri Lanka
68
32
43
30
27
82
18
36
36
28
Taiwan
70
30
48
38
14
76
24
39
39
22
Thailand
66
34
41
39
20
83
17
39
35
26
Vietnam
67
33
42
39
19
85
15
37
32
31
Brand Perceptions are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
142
143
144
What can Korean brands and designers do to counter the established brands?
There is little that any Asia-Pacific brands can do to counter the European and US brands. The
reasons for this the brand equity of the established brands and the fact that these brands are so
entrenched in the global market that it would be both expensive and ultimately counter-productive for
any newcomer to attempt to overturn the apple cart.
To counter the global brands a newcomer will have to succeed in each of the following areas:
Product Price
Product Design
Store Atmosphere
Store Location
Store Service
Product Promotions
The global players have spent decades working on these areas, and many of the global players have
had only marginal success. The marginality of their success is measured in their Return on
Investment, which has been only moderate in the past, and had indeed shown decline since 2008.
For Asia-Pacific brands to succeed they will need to re-think the traditional fashion brand retail model.
How can Korean brands and designers do better than the established brands?
It is not possible to speculate how designers may produce better designs. The experience is that
many Asia-Pacific designers are greatly influenced by US and European design concepts. Of course
the only reason that such designers are successful is because there is consumer demand for their
designs; ergo they have to produce US and European styles in order to succeed. The global brand
managers use designers to create the consumers perception of what is, and what is not, fashionable.
In this respect the consumer is very malleable and is sufficiently neurotic to believe that this year
green is the new black or brown is the new chique. One can never under-estimate the style sense
of the consumer, or over-estimate the ability to ability brand managers have in manipulating a gullible
customer base.
The question then is what Asia-Pacific brands can do to be better than the global brands. Once again
one returns to the consumer.
Product Price. The major high street fashion brands have firm control of product pricing
levels.
Product Design. The major high street fashion brands decide themselves on what is
fashionable at any particular moment in time.
Store Location. The major high street fashion brands have the market power to command the
prime locations.
Product Promotions. The major high street fashion brands have the market power to beat any
competitor in promotional activity.
145
Store Atmosphere. New brands can compete here by catering to specific consumer
demographic and market segments.
Store Service. New brands can compete here by catering to specific consumer demographic
and market segments.
146
The use of automated systems based on customer identification would potentially enhance the
shopping experience for the buyer and at the same time allow the collection of valuable market
intelligence.
Special Occasions
Small brands are more flexible in their operations and they are more able to interact with specific
customer segments. By matching specific customer segments with specific product offering and
special promotions a retailer can attract customers in a much more effective way than any major high
street fashion retailer.
By building up consumer contact lists, categorised by demographic and social groupings, products
could be promoted to these customer segments through special occasions (during weekends or
evenings) where specific product ranges could be presented. The product ranges could then be
maintained through online marketing.
Spontaneous Eventing
The most profitable and dynamic customer segment tends to be the under 24 year group. This
demographic could be attracted to spontaneous events held in the retail premises or in local clubs or
other locations. These events would combine a social occasion with the promotion of particular
product offerings. Such events would be announced by mobile telephone messaging at the last
moment and would be intended to divert young people from their usual social haunts to the event.
One would build into the system exclusive events for high spending customers and these would
involve musicians, local celebrities or special guests. There would be amongst the general customer
base a desire for inclusion into this inner circle.
There are many similar ways in which a small brand can outmanoeuvre the larger, more bureaucratic,
brands.
147
Niche Markets
There are niche markets, niche re-vitalisation and niche development; and there is always some
opportunities in each area.
Geographic Niches
Districts with limited competition often provide strong retail niches where it is very easy for shoppers
to find a retail brand locations isolated from competitors. Downtowns areas are often available for
strong niche locations. Niche locations can also provide cost advantages because retail space is
usually affordable and staff wage expectations are lower.
Customer Segment & Demographic Niches
The identification of customer segment niches requires local knowledge. The possibilities include:
Ethnic demographics
Office workers
Older customers segments
Sports enthusiasts
Students
Tourists
148
Brand Superiority
Brands have to offer potential buyers as many benefits as possible; especially, product superiority,
product differentiation, or a very strong brand image or heritage.
New brands and newcomers are limited in the benefits they can offer. The democratisation of the
luxury brands and their general availability (if not financial accessibility) means that the bar has been
raised for all the middle ground players. Thus Product Superiority and Product Differentiation are now
perceived by consumer as being the preserve of the luxury brands. In general this also applies to
Brand Image and Brand Heritage.
Thus is it increasingly difficult for High Street Fashion brands to offer their customers anything other
than the things being sought by the average retail customer. Those brand benefits are generally
regarded as being:
Product Price
Product Design
Store Atmosphere
Store Location
Store Service
Product Promotions
The High Street brands are thus limited to offering a lower product price, a better store atmosphere,
better store service, and a more convenient store location. The benefits of design and promotions are
transitory and very variable.
149
Brand Resonance
Building a strong brand uses a sequence of steps, in which each step is dependent on the success of
the previous step such as. These are as follows:1.
2.
3.
4.
The implementation of these steps, essential in the creation of the best brand identity, brand meaning,
brand responses, and brand relationship, is a complicated and difficult process. The components of
the process involve the following concepts:Brand Salience relates to aspects of the awareness of the brand, for example, how often and easily
the brand is evoked under various situations or circumstances.
Brand Meaning is made up of two major categories of brand associations that exist in customers
minds related to performance and imagery, with a set of specific subcategories within each. These
brand associations can be formed directly (from a customers own experiences and contact with the
brand) or indirectly (through the depiction of the brand in advertising or by some other source of
information, such as word of mouth). These associations serve as the basis for the positioning of the
brand and its points-of-parity and points-of-difference. Creating strong, favourable, and unique
associations and the desired points-of-parity and points-of-difference can be difficult for marketers,
but essential in terms of building brand resonance. Strong brands typically have firmly established
favourable and unique brand associations with consumers.
Brand Responses refers to how customers respond to the brand and all its marketing activity and
other sources of information that is what customers think or feel about the brand. Brand responses
can be distinguished according to brand judgments and brand feelings, that is, in terms of whether
they arise from the head or from the heart.
Brand Judgments focus on customers personal opinions and evaluations with regard to the brand.
Brand judgments involve how customers put together all the different performance and imagery
associations of the brand to form different kinds of opinions.
Brand Feelings are customers emotional responses and reactions with respect to the brand. Brand
feelings also relate to the feelings that are evoked by the marketing program for the brand or by other
promotional means.
Brand Resonance refers to the nature of this relationship and the extent to which customers feel that
they connect with a brand and feel in synchronization with it. With true brand resonance, customers
have a high degree of loyalty marked by a close relationship with the brand such that customers
actively seek means to interact with the brand and share their experiences with others.
The importance of the brand resonance model is in the checklist it provides for brand building. It
provides a basis by which brands can assess their progress in their brand building efforts as well as a
guide for marketing research initiatives. Brands must have a Duality. That Duality is the brands
connection with the Consumers Head and Heart. One important point reinforced by the model is that
a strong brand has such a duality. A strong brand appeals to both the head and the heart. Strong
brands blend product performance and imagery to create a rich, varied, but complementary set of
consumer responses to the brand.
150
Brand Persistence
Brand Persistence or Success is a basic matter of capturing a sufficient customer base or brand
following to sustain the brand over a period of time. Each year there are hundreds of brands
introduced to the market; only a limited number survive 3-5 years, and only a fraction survive for more
than 5 years. The lifecycle of a brand depends on the professionalism and determination of the brand
managers.
d. Strategy
Strategic analysis of customer expectations
Strategic blueprint to meet the customer expectations
Strategic Business Plan
Strategic marketing objectives
e. Focus
Focus on the customer base segments which meet the profit objectives of the brand
Focus on realistic marketing goals
Focus on the medium and long term development of the brand
f.
Monitor
Seek and automate customer base feedback
Formalise data collection and collation
151
152
special access to exclusive events or benefits, or just something as basic as having their preferences
acknowledged and honoured.
The lifecycle is entirely interdependent. Retention efforts first start with strong acquisition. One needs
to attract the right people in the first place. Once one has captured a customer, the proper
maintenance is essential. One starts building their loyalty habit in the very first interactions with the
brand. A strong cross-enterprise single view of the customer (recognizing, learning and remembering)
can ensure that in their next interaction, whatever channel they chose to engage the brand through,
the brand is aware of the previous interaction.
Brands need to be both reactive and proactive in their efforts to reduce attrition.
153
a series of products, perhaps released on an annual basis, aimed at the youth market then it is
entirely possible that there would be a market for those products.
154
How can one produce branded functional product innovations using new textiles and functional
research?
If such innovation was possible then it would have already be done by the existing brand managers.
Indeed recent scientific research, and the resulting publicity, has revealed that the claims made by the
sport footwear manufacturers regarding the benefits of the technical construction and materials used
in their footwear were entirely false.
How can one tap into sporting trends, sports personality brands, or sports venue brands?
With sportswear brands there is always the possibility to promote brands through signing up sports
personalities and sports venues. This is an expensive business and the short-term advertising effect
is variable. Essentially the brand is re-enforced through its identification with the sports personality or
tournament and this is a highly seasonal phenomenon and a short-lived phenomenon. It is unlikely
that a newcomer could achieve any real headway in this market segment unless the newcomer was
prepared to make a very significant cash investment in the project. That investment would certain run
into several tens of millions of dollars.
Fashion accessories
Can one extend existing Fashion wear brands into fashion accessories?
The extension of fashion wear brands into fashion accessories is a strategy that is sometimes used
by brand names. Certainly the use of co-ordinated accessories which are introduced concurrent with
that seasons designs are a valuable addition to the product range. The supply of loose accessories
(i.e. not part of any collection) may have some drawbacks for the overall brand image as it will tend to
distract from the overall position of the brand and the seasonal imagery.
Can one offer product innovation or functionality?
There are product and technological innovations frequently applied to fashion accessories. One
example is the Novero series of fashion headsets. This product range goes from a US$110,000
diamond fashion headset, to a US$1000 lapis lazuli headset to more modestly price headsets. Clearly
the buyers of these accessories are rather more neurotic than the average fashion buyer, and as such
represent a good marketing opportunity.
Similarly there are many possibilities to build electronics into handbags, belts, and other fashion
accessories and these opportunities might be profitably explored.
Lingerie
There are several global lingerie brands, for example Victorias Secret, La Perla and La Senza,
however all have suffered from reduced margins and trading difficulties over the years.
In December 2011 the UK operation of La Senza went into administration with the closure of 164
outlets. This is a difficult market sector in which to may sustainable returns.
Pierre Cardin Lingerie was introduced in Singapore in 1995 and in general this brand was successful.
However, whilst the Cardin name may be known to older women, it is probably not so well known to
the younger women, and their partners, who are the target demographic for lingerie products.
Which personalities, images or perceptions can be tapped to produce an outstanding lingerie brand?
155
156
Average
Average
Average
Average
Average
Average
Bad
Good
Average
Average
Bad
Good
Average
Average
Average
Average
Average
Average
Average
Average
Average
Good
Good
Average
Good
Good
Good
Good
Good
Good
Good
Good
Good
Bad
Bad
Bad
Bad
Bad
Bad
Average
Average
Bad
Good
Good
Good
Good
Good
Good
Good
Good
Good
Good
Good
Good
Good
Good
Good
Average
Average
Good
Average
Average
Average
Average
Average
Average
Good
Good
Average
Good
Good
Good
Good
Good
Good
Average
Average
Good
Average
Average
Average
Average
Average
Average
Average
Average
Average
Good
Good
Good
Good
Good
Good
Good
Good
Good
Average
Average
Average
Average
Average
Average
Average
Average
Average
Average
Average
Average
Average
Average
Average
Bad
Bad
Average
Average
Good
Good
Average
Average
Good
Good
Average
Average
Good
Good
Average
Bad
Bad
Good
Good
Average
Bad
Bad
Average
Bad
Bad
Bad
Bad
Bad
Average
Bad
Bad
Good
Good
Good
Good
Bad
Bad
Bad
Good
Good
Good
Good
Country specific
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
157
158
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Average
Good
Limited
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Limited
Limited
Bad
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Bad
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Average
Average
Good
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Bad
Good
Good
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Bad
Good
Good
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
Country specific
Good
Performance Indicators
Average
Good
Average
Average
Good
Average
Good
Average
Good
Good
Bad
Good
Average
Average
Average
Well
Average
Average
Well
Average
Well
Average
Well
Well
Badly
Well
Average
Average
Bad
Badly
Average
159
Average
Average
Well
Badly
Well
Well
Average
Well
Average
Well
Average
Average
Well
Average
Badly
Average
Country specific
Average
Average
Well
Badly
Well
Well
Average
Well
Average
Well
Average
Average
Well
Average
Badly
Badly
Well
Average
Average
Well
Badly
Well
Well
Average
Well
Average
Well
Average
Average
Well
Average
Badly
Badly
Well
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
Average
Average
Well
Badly
Well
Well
Average
Well
Average
Well
Average
Average
Well
Average
Badly
Badly
Well
Well
Average
Average
Well
Badly
Well
Well
Average
Well
Average
Well
Average
Average
Well
Average
Badly
Badly
Well
Good
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
Country specific
Well
160
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Bad
Bad
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Well
Average
Average
Good
Average
Bad
Average
Good
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Well
Average
Average
Good
Average
Bad
Average
Good
Good
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Well
Average
Average
Good
Average
Bad
Average
Good
Good
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
Country specific
Good
161
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Bad
Bad
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Bad
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Average
Good
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Bad
Good
Good
Average
Average
Good
Bad
Good
Good
Average
Good
Average
Good
Average
Average
Good
Average
Bad
Bad
Good
Good
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
Country specific
Good
Fashion
Accessories
Lingerie &
Underwear
Sports &
Outdoor
Wear
Every day
Wear
Denim &
Casual Wear
Career Wear
S = 1-7
years
M = 7-14
years
L = 14-21
years
Young
Casual Wear
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
= Easy
= Neutral
= Difficult
Market Entry Difficulties refer to the ease of entry to the market, the potential for direct investment and
the regulatory environment for the products and the operation of a business.
162
Fashion
Accessories
Lingerie &
Underwear
Sports &
Outdoor
Wear
Every day
Wear
Denim &
Casual Wear
S = 1-7
years
M = 7-14
years
L = 14-21
years
Career Wear
Young
Casual Wear
Market Potential
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
= Growth
= Static
= Decline
The market potential is a function of market size, disposable income and propensity to consume. In
some countries, notable China, there is demographic dysfunction due to the one child policy and this
has created a serious problem with standard distribution of the population. Essentially in China there
are fewer females and there is an aging population. Both these factors in China will impact womens
fashion products.
163
Fashion
Accessories
Lingerie &
Underwear
Sports &
Outdoor
Wear
Every day
Wear
Denim &
Casual Wear
Career Wear
S = 1-7
years
M = 7-14
years
L = 14-21
years
Young
Casual Wear
Financial Potential
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam
= Growth
= Industry Averages
164
= Decline
Fashion
Accessories
Lingerie &
Underwear
Sports &
Outdoor
Wear
Every day
Wear
Denim &
Casual Wear
Career Wear
S = 1-7
years
M = 7-14
years
L = 14-21
years
Young
Casual Wear
Australia
Bangladesh
Cambodia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New
Zealand
Philippines
Singapore
South
Korea
Sri Lanka
Taiwan
Thailand
Vietnam
= Positive
= Neutral
165
= Negative
The data above is derived from relative product, market and financial analysis.
166
The data above is derived from relative product, market and financial analysis.
167
The data above is derived from relative product, market and financial analysis.
168
The data above is derived relative product, market and financial analysis.
169
The data above is derived relative product, market and financial analysis.
170
The data above is derived relative product, market and financial analysis.
171
The data above is derived relative product, market and financial analysis.
172
The data above is derived relative product, market and financial analysis.
173
The data above is derived relative product, market and financial analysis.
174
The data above is derived from the opinions of the fashion and retail experts in each country.
175
Product Sectors
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
176
Survey Data
The investigation consisted of field surveys and consumer interviews.
Discussions with the local experts covered the following issues based on the interviewees personal
or corporate experiences. Interviews were conducted with various industry experts.
Fashion Experts at Fashion Magazines or other Media regarding the existing market conditions for
Womens Fashion Brands, the existing penetration of Asian Womens Fashion Brands and the future
prospects for Asian Womens Fashion Brands.
Fashion Trade Wholesalers, Fashion Brand Managers, Fashion Trade Buyers, Fashion Retailers, Instore Retail Negotiators were interviewed.
The surveys of Consumers and Retail Customers were done to analyze overall Womens Fashion
retail issues, Brand awareness and attitudes towards Asian brands and imports, criticisms of existing
retailers, methods for fashion retailers to improve service, et cetera. The Surveys covered Retail Store
Customers and Consumers of Fashion products.
Consumer Surveys
Consumer Surveys Details
Consumer Surveys
Buyer Profiles:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU4A.xls
Competitors:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU4C.xls
Retail
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU4O.xls
Operations:
Products:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU4P.xls
Trading Area:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU4T.xls
177
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU5A.xls
Competitors:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU5C.xls
Retail
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU5O.xls
Operations:
Products:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU5P.xls
Trading Area:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU5T.xls
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU6A.xls
Competitors:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU6C.xls
Retail
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU6O.xls
Operations:
Products:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU6P.xls
Trading Area:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU6T.xls
178
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU7A.xls
Competitors:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU7C.xls
Retail
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU7O.xls
Operations:
Products:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU7P.xls
Trading Area:
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Databases/SU7T.xls
Competitors
1.
Luxury Brands
2.
3.
4.
Asian Brands
5.
Indonesian Labels
6.
Zara
7.
Mango
8.
GAP
9.
Top Shop
10.
Dorothy Perkins
11.
12.
The Executive
13.
Karen Millen
14.
H&M
15.
179
Retail Operations
1.
Brand Management
2.
Product Management
3.
4.
5.
6.
7.
8.
Customer Handling
9.
10.
Financial Controls
11.
12.
13.
14.
Distribution Control
15.
Products
1.
2.
Dresses
3.
4.
5.
Knitwear
6.
Lingerie
7.
Maternity Wear
8.
Nightwear
9.
10.
Suits
11.
Skirts
12.
13.
14.
15.
Accessories
180
Buyer Profiles
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Immediate Distributors
6. Immediate Trade
7. Immediate End Users
8. Immediate Other Users
9. End User Age: <25
10. End User Age: 25-55
11. End User Age: 25-55
12. End User Social Group: AB
13. End User Social Group: C1
14. End User Social Group: C2
15. End User Social Group: DE
Trading Area
1.
Jakarta
2.
Surabaya
3.
Bandung
4.
Medan
5.
Semarang
6.
Palembang
7.
Ujung Pandang
8.
Malang
9.
Padang
10.
Surakarta
11.
Kupang
12.
Yogyakarta
13.
Banjarmasin
14.
Pontianak
15.
Manado
181
Geographic Coverage
The report will provide data for Indonesia National market, plus market data for the largest City and
Town in Indonesia. See:
http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/World_Cities/ID.html
Financial data
The databases gives Financial data for each of the below Women's Fashion in Indonesia Financial
Data and Margins by year Historic: 1997-2011, and Forecast: 2012-2028.
http://www.worldconsumption.info/Womens_Fashion_IndonesiaBASE_FOLDERS/xls_MarketResearch/F0M.xls
http://www.worldconsumption.info/Womens_Fashion_IndonesiaBASE_FOLDERS/xls_MarketResearch/G0M.xls
182
183
Sections
Preface
Chapters
Databases
Financials
Industry
Markets
Products
Grids
Reference
Contents
Legend
Cities
Countries
184
Chapters
Chapter 1
ADMINISTRATION
Chapter 2
ADVERTISING
Chapter 3
Chapter 4
BUYERS COMPETITORS
Chapter 5
Chapter 6
BUYERS PRODUCTS
Chapter 7
Chapter 8
Chapter 9
COMPETITOR ANALYSIS
Chapter 10
COUNTRY FOCUS
Chapter 11
DISTRIBUTION
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
Chapter 21
Chapter 22
Chapter 23
Chapter 24
Chapter 25
185
Chapter 26
GEOGRAPHIC DATA
Chapter 27
INDUSTRY - NORMS
Chapter 28
Chapter 29
Chapter 30
Chapter 31
Chapter 32
Chapter 33
Chapter 34
Chapter 35
Chapter 36
Chapter 37
Chapter 38
Chapter 39
Chapter 40
MARKETS
Chapter 41
OPERATIONAL ANALYSIS
Chapter 42
OVERSEAS DEVELOPMENT
Chapter 43
PERSONNEL MANAGEMENT
Chapter 44
Chapter 45
PRICING
Chapter 46
Chapter 47
PRODUCT ANALYSIS
Chapter 48
PRODUCT DEVELOPMENT
Chapter 49
Chapter 50
PRODUCT MIX
Chapter 51
PRODUCT SUMMARY
Chapter 52
186
Chapter 53
PROMOTIONAL MIX
Chapter 54
SALESFORCE DECISIONS
Chapter 55
SALES PROMOTION
Chapter 56
SURVEYS
Chapter 57
Chapter 58
TECHNOLOGY
Chapter 59
Chapter 60
URBAN COMPETITION
Chapter 61
TOWNS - FINANCIAL
Chapter 62
TOWNS - INDUSTRY
Chapter 63
TOWNS - MARKET
187
BUSINESS PLANNING
Checklist
Before one can develop a realistic business plan one needs to establish the business objects and
then to produce a database with the following parameters:-
1. Business start-up
a. Company Law
b. Capital Requirements
2. Credit
a.
b.
c.
d.
e.
3. Employment
a. Employment contracts
b. Employment laws
4. Import of Goods
a. Quotas & Licensing
b. Prohibitions & Restrictions
c. Free imports
d. Tariff-rate quotas
e. Approvals & Inspections
5. Import Duties
a. General Rates
b. Most-Favoured Nation Rates
c. Agreement Rates
d. Preferential Rates
e. Tariff-rate Quota Rates
f. Provisional Rates
g. Preferential Duty Reductions
6. Taxes
a. Value Added Taxes, Reduced Rates, Exemptions, Rebates
b. Business Taxes, Tax Conventions, Specific Product/Trade Taxes
c. Miscellaneous Taxes
7. Product Labelling & Certification
a. Language of labels
b. Safety Certifications
c. Mark Lists
d. Labelling requirements
188
8. Authorities
a. Customs
b. Financial
c. Commerce
d. National, State, Regional, City administrations
9. Compliance
a. Tax compliance
b. Enforcement of regulations
c. Treatment of foreign enterprises
d. Corruption
10. Retailing
a. Regulations
b. Domestic Retail Development
c. Foreign Retail Investments
d. Economic & Political policies
e. Establishment of enterprises
f. Methods for Market Entry (M&A, Sole Distributor, Franchise, Local presence, etc.)
g. Consumer Markets
h. Logistics & Supply Chains
i. Retail Location & Property
j. Infrastructure difficulties
k. Transaction Costs
l. Bureaucracy
m. Distribution Channels
n. Personnel
o. Financial management
p. Availability of premises
q. Availability of services
11. Retail Demand
a. Emergence of urban middle class
b. Demand stimulation & Disposable Incomes
c. Cultural Factors and Cultural change
d. Retail outlet distribution
e. Infrastructure development
f. Fragmentation of Markets
g. Economic & Socio-cultural demarcations
h. Consumer Segments
i. Consumer Lifestyles
j. Consumer Prejudices
k. Strength of Domestic companies
l. Aggressiveness of Domestic companies
12. Retail Values
a. Growth
b. Real v- Forecast
13. Demand Drivers
a. Supply Chain Cost reduction
189
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
Store Format
Information dissemination and reception
Shopping Habits
Service provision
Customer Demand / Expectation satisfaction
Product Pricing
Retail Channel Development
Product Mix
Marketing Mix
Family size and composition
Geographic location
Regional diversity
14. Competition
a. Domestic Competition
b. International Competition
c. New Entrants
d. Retail Consolidation
e. Aggressiveness of Players
f. Bargaining Power of Suppliers
g. Bargaining Power of Buyers
h. Cost Reduction
i. Location & store siting
j. Internet
k. Payment systems
15. Market Entry Strategies & Control of Operations
a. Own Local Manufacture & Distribution & Retail Outlets
b. Own Stores
c. Joint Ventures & Mergers
d. Licensing
e. Franchising
f. Stocking Distributors
g. Sales Representation to Wholesalers
h. Direct Sales to Consumers
16. Tactics
a.
b.
c.
d.
e.
f.
g.
Control and Define Supply Chain and Distribution policies and finances
Enter smaller cities
Concentrate of younger demographics
Entrench & strengthen brand recognition
Develop Sales Channels / Internet / TV / Malls / Shopping experiences
Offer intangible benefits
Reduce Costs and Reduce Prices
190
Checklist implementation
Business Planners should input their business objectives and parameters using a database format,
for example, the Business_Planning_Checklist_Retailing.xlsx file which is found in the Toolkit.
Basic data on Customs Tariff, Duty & Taxation levels, Import restrictions & Regulations, Shipping &
Packaging Requirements, Customs Clearance Procedures and time delays, Port of Entry data: Name,
Location, Description, Customs Handling, Storage, Transport facilities, et cetera, can be found in the
supporting documentation for each country:-
http://www.worldconsumption.info/Womens_Fashion_Australia/Australia_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Bangladesh/Bangladesh_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Cambodia/Cambodia_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_China/China_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_HongKong/HongKong_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_India/India_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Indonesia/Indonesia_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Japan/Japan_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Malaysia/Malaysia_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_NewZealand/NewZealand_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Philippines/Philippines_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Singapore/Singapore_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_SouthKorea/SouthKorea_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_SriLanka/SriLanka_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Taiwan/Taiwan_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Thailand/Thailand_Doing_Business.pdf
http://www.worldconsumption.info/Womens_Fashion_Vietnam/Vietnam_Doing_Business.pdf
191
192
Cashflow Projections
The client can order Cashflow projections (as part of the After-Sales Service) once operational
parameters have been set. The operational parameters are the initial retail capital investments, store
location, overheads, staff levels, et cetera.
Cashflow projections are done using a monthly interval and will depend on which month the retail
store will open. It is not possible to produce Cashflow projections without knowledge of the Start
month and other market criteria. The first few months of sales revenue in the retail fashion business
will depend on which month a store first opens. Other items, like pre-startup expenses, opening
balances, et cetera, must be known before a Cashflow projection can be made.
http://www.datagroup.org/BASE_FOLDERS/xls/CASH_FLOW.xls
193
194
When you install the Business Plan software it creates a Business Plan directory folder on your
computer. So that you can easily find the folder, it is put on your root directory. The structure of this
folder is shown here.
From this folder you can generate any number of Business Plan projects, and these individual
projects are then saved to the Project folder you specify in the project generation process. See the
structure of this directory here.
195
How it works...
First, review the Market Research to gain an understanding of the market and the industry. This is a
simple process which allows users to browse the Market Research Web and quickly pick those areas
of interest and potential business opportunity.
Second, install and run the Business Plan software to generate the detailed commercial and project
management databases. Each Business Plan is a single project and the user can run as many
projects, or business plan scenarios, as required.
196
197
The Business Plan software takes the user through a series of database forms and spreadsheets
which will result in the production of a comprehensive and cohesive Business Plan:-
One can modify the business plan, or run as many different scenarios as necessary, to refine a
particular business plan or to explore alternatives.
Third, run the Project Dialogue software to generate the advanced Project Action Plan databases for
the country covered by the project.
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The Project Dialogue software takes the user through a series of database forms and spreadsheets
which will result in the generation of the detailed Project Action Plan databases and timetables for the
country that the project will cover:-
Fourth, users can obtain further services as part of the After-Sales Service, including a Service Team,
Consultants, Resources, Support Services, and Corporate Research; and this allows users to access
additional project resources and/or produce more detailed analyses and blueprints for project
management.
There are many ad hoc services through which users can obtain the help they need to assist them to
reach their business goals. These ad hoc services can range from a full Service Team which can
produce a fully implemented turnkey project, to the simple provision of a consultant on the other end
of a telephone line to immediately answer a technical or commercial question, or the loan of a
programmer or systems engineer for a few hours. In addition to the human resources, users can also
access a wide range of commercial and physical resources, support services, and corporate
intelligence.
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These resources and services become an integral and operational part of the project and are
managed by the project managers.
Fifth, users generate the Project Web which will allow users to view the project in its entirety.
Users do not need to complete all the forms; however the ones which users do not complete will
result in incomplete project web pages. Users can edit out these unwanted web pages. Users can of
course return to these forms later and complete any missing data and then re-generate the project
web.
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Users can update the project data as often as users require and then re-generate the Project Web (if
users specify the same Project Name then the new project web will over-write the existing web).
Users can also generate as many separate Projects designs or scenarios as users wish (each with a
unique Project Name) and these will generate separate Project Webs for viewing and discussion.
Finally, users can obtain software and databases to generate highly detailed medium and long-term
business planning analyses and forecasts for company management and investors.
There are diverse utilities, forecasting and modelling tools available for advanced business modelling
and forecasting; and one can use these to produce highly detailed analyses, or specialized business
planning forecasts and documentation, reports, spreadsheets, and other items to assist company
management in their medium and long-term planning activities.
This is especially useful where users are involved in technical/industrial processes, or a complicated
distribution system, or intricate financial operations, or a technologically evolving product, where one
has to coordinate and manage the project elements over an extended geographic space and/or over
a medium or long-term timescale.
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Methodology
For a general description of the methodology used to prepare this database see: Methodology
Presentation
The report is delivered as follows:
1. Executive Summary as a PDF file.
2. Report and report Database on DVD (2 copies) or Hard Disk Drive.
3. 1-2 hour Teleconference / Teamviewer presentation of the report findings.
4. Dedicated web site access for the report & databases.
5. All DataGroup / Data Institute products are generated for each client order to ensure that the
client receives the most up-to-date information. This also produces a unique database for the
client; for this reason we archive a copy of the unique database for use if the client needs any
future work from the database.
http://www.datagroup.org/about-delivery.html
6. However, in addition to the report there is a vast amount of data and services which a client
can access. This is done as part of the After-Sales Service.
support@data-institute.org
All reports, studies and consultancy assignments must inevitably mean that the publishers or
consultants are trying to interpret the needs and expectations of their clients. Unfortunately in most
cases, with most publishers, the clients will not receive all the data they need. This is not the case
with a DataGroup report.
The main problem that DataGroup has to resolve is that the database for each report would, if printed,
be about 20 volumes of 600 pages for each volume. Clearly this amount of information (12,000
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pages) would be unusable and unwanted by the majority of clients - and indeed the cost would be
twenty times greater.
Thus with After-Sales Services clients have 12 months Support whereby clients can obtain more
information and data on markets, industries, competitors, distribution channels, end users, et al.
These After-Sales Services are supplied Data Institute and DataGroup.
See: http://www.data-institute.org/about-publishers.html and
http://www.data-institute.org/about-faq-datagroup.html
All DataGroup / Data Institute products have a 12 month After-Sales Service and what this means is
that from 12 months after the data of purchase a client can obtain more data or services at a greatly
reduced cost. After-Sales Services are usually provided at 35%-55% of the normal retail costs. This is
because this work is done during off-peak hours.
http://www.datagroup.org/about-after-sales.html
Costs: The current cost is 75 per hour; this includes all researchers / computer / database access
costs.
The cost of this After-Sales Service is low and provides a highly cost conscious method of acquiring a
vast amount of additional and more detailed information at a relatively low cost. No other Publisher
provides such a service to their clients
Delivery of the results produced is 7-14 days. For more urgent After-Sales Service work the costs
depend on the clients time frame and the availability of our researchers.
Quotations: We quote client in advance for After-Sales Service work and this quotation states the total
cost of the job, plus the anticipated delivery time.
After-Sales Services are usually provides on DVD, Memory Stick, USB Hard Drive or online.
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Resource Webs are maintained for the use of the client for a period of 12 months from the data of the
last data addition or update to that site.
These dedicated web sites are provided as part of the After-Sales Service. We try to make the web
site as visually attractive as possible and for this we simply need the clients permission to use their
company logo and their own website's colour themes.
Product Level
This is an Entry Level product
This is an entry level product which provides users with corporate, market and commercial
intelligence on the company specified and the markets and industries in the countries listed. The
report analyses the industry and markets with a basic point of reference, namely the Base Reference
Country. The report is formatted to give both a narrative description of the various matters covered as
well as provide readers with the ability to directly use the Chapters (via Microsoft Word or compatible
word processors) to produce their own reports and documentation. Experienced users will be able to
use the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics
- as well as sophisticated business and commercial forecasts and models. The databases are
provided in both Excel spreadsheets and an Access database. Explanatory notes are provided as
word processor documents or in PDF formats.
The Base Reference Country is usually the country of the client; however client can order a database
with another Base Reference Country. If a different Base Reference Country that that provided in this
database is needed, then client can order that as part of the After-Sales Service.
As an entry level product the narrative is necessarily illustrative in its terminology and seeks to
provide a basic degree of business logic and theory which indicates the rational applied in the
forecasting and modelling methodology.
The databases provided are specifically designed to provide users with a uniform and consistent
numeric measure of both (normally) quantifiable values as well as conceptual factors which are
(usually) only capable of qualification. Experienced users will know how to apply forecasting and
modelling software to the numeric data provided to generate highly detailed and discrete business
planning models. The databases provided in this report can be used directly with databases on other
product, markets and industries in other countries. The databases are specifically designed to be
trans-national, currency neutral, inflation and purchasing parity adjusted, product parity and product
equivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked or
merged programmatically in business planning models to provide multi-national and multi-level
analysis.
CURRENCY DATA: The currency figures given in this report are in U.S. Dollars. If the Windows
Regional Settings on your computer is set to a non-U.S. setting then the currency symbol ($) may
appear in the local currency (, , , etc.). Either reset your Regional settings, or alternatively read all
currency figures in this report as being U.S. Dollars (US$). There are separate spreadsheets and
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database tables in the report which specifically give the data in various currencies, namely, Euros,
Yen and Yuan, and these files are clearly marked.
Before using the data provided please read the Database Introduction as well as the Notes and
Definitions links found in each Chapter. There are subtle statistical nuances to some of the
spreadsheets and databases which will help the user to fine-tune their models and forecasts to obtain
maximum effect and greater accuracy. The database flow chart and database description should be
consulted when applying statistical and modelling software.
To assist first time users, there is a Toolkit provided which will enable users to use various software
options to enable the user to gain the maximum benefit from the databases.
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Go to the Chapters section and click on the Site Map link to see the overall layout of the document.
Click on the Legend link to see the pictorial representations of the types of data.
When you are ready to extract data it is best to begin with the Chapters section as this will give you a
general overview of the data and also it will explain the data and the reasoning behind the document.
Once you are familiar with the type of data involved you can look at the database part of the
document which is contained in the following sections: Databases, Financial, Industry, Markets and
Products.
The database part of the document is provided as both Excel spreadsheets and Access databases.
The Analysis Grids are planning tools and the Planning modules are to enable Business Planning
work at various levels of sophistication. Also in the Planning section you will see how to get additional
data and resources when you need them.
Toolkit
To assist users there is a Toolkit to be found on the DVD and Hard Disk Drive. This Toolkit is divided
into various sections:1. Adobe Reader
2. Database Utilities
3. Enterprise Resource Planning
4. Integrated Development Environment
5. If you intend to implement DataGroup and Data Institute databases online (internet or
intranet) then an Integrated Development Environment is often the easiest route to data
dissemination and data manipulation.
6. Microsoft Office Utilities & Updates
7. OpenOffice
8. US Department of Commerce and US Census Data Tools
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Because all DataGroup and Data Institute database are directly compatible with U.S.
Government databases (especially the Department of Commerce, US census, NIST,
Treasury, et al) it is sometimes useful for users to use US Government data handling tools to
manage not only US Government data, but also the data provided by DataGroup and Data
Institute. Alternatively, if you are already using this US Government software you can simply
access the DataGroup and Data Institute databases with the same software.
In generate DataGroup and Data Institute databases use the same database parameters,
structures and field names as those found in US Government databases, and thus uses can
correlate and query databases without undue difficulty.
9. Utilities
Some Compatible Software products (See the Database Support site for a full list)
Project Management Software: 24SevenOffice, Assembla, AtTask, Basecamp, Central Desktop,
Cerebro, Clarizen, codeBeamer, Collabtive, Concerto, Contactizer, CredAbility.info, dotProject, Easy
Projects .NET, eGroupWare, FastTrack Schedule, Feng Office Community Edition, FogBugz,
GanttProject, Gemini, Genius Inside, Glasscubes, Huddle, Hyperoffice, InLoox, JIRA, Journyx,
Kayako, KForge, KPlato, Launchpad, LiquidPlanner, LisaProject, MacProject, MantisBT, MatchWare
MindView 3 Business, Merlin, MicroPlanner X-Pert, Microsoft Office Project Server, Microsoft Project,
Mingle, O3spaces, OmniPlan, Open Workbench, OpenProj, Oracle Project Portfolio Management,
Planisware 5, Planner Suite, Pmplus+, Primavera Project Planner, Project KickStart, Project.net,
Project-Open, Projectplace, ProjectSpaces, Projektron BCS, PSNext, QdPM, QuickBase, Redmine,
Rachota, SAP RPM, Smartsheet, TaskJuggler, Teamcenter, Teamwork, Tenrox, Trac,
TrackerSuite.Net, Ubidesk, VPMi, WorkLenz, WorkPLAN Enterprise, workspace.com, WebSPOC,
Wrike, Zoho Projects
ERP Packages: Adempiere, BlueErp, Compiere, Dolibarr, Fedena, GNU Enterprise, JFire, Kuali
Foundation, LedgerSMB, OFBiz, Openbravo, OpenERP, Opentaps, Postbooks, SQL-Ledger, Tryton,
WebERP, 1C:Enterprise, 24SevenOffice Start / Premium / Professional, abas ERP, Accpac, Agresso
Business World, AMS Advantage, BatchMaster ERP, Bowen & Groves, CGram Enterprise, Clear
Enterprise, Comarch Altum, Compass ERP, Compiere, Comprehensive Patient Administrator, COA
Solutions Ltd - Smart Business Suite, Consona Corporation Intuitive / Made2manage / AXIS /
Cimnet / Encompix / DTR, Epicor Enterprise, Global Shop Solutions One-System ERP Solutions,
HansaWorld, ERP Adage (Adage), ERP LN (Baan), ERP LX (BPCS) ,ERP SL (SyteLine), ERP Swan
(Swan), ERP SX.Enterprise (SX.Enterprise), ERP VE (Visual Enterprise), ERP XA (MAPICS), IFS
Applications, JD Edwards EnterpriseOne & JD Edwards World, JustFoodERP.com, kVASy4, Kingdee,
Lawson M3 / Movex, Lawson S3, Log-net, Maximo (MRO), Microsoft Dynamics AX, Microsoft
Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics SL, Momentum, MyWorkPLAN,
NetSuite, Openda QX, OpenMFG, Oracle e-Business Suite, Paradigm, PeopleSoft, Plex Online, QAD
Enterprise Applications, Ramco Enterprise Series 4.x, Ramco e.Applications, Ramco On Demand
ERP, MAS 90, MAS 200, MAS 500, Technology One, SAGE ACCPPAC, SAGE Pro ERP, SAGE ERP
X3, SAP Business Suite, SAP Business ByDesign, SAP Business One, SAP Business All-in-One,
TaskHub, SYSPRO, SYS-APPS, mySAP, Visibility.net, WorkPLAN Enterprise
Enterprise Feedback Management Systems: SynGro, Perseus (Vovici), Clicktools, DatStat, Inquisite,
SPSS, FIRM (Confirmit), NetReflector, Allegiance, Enetrix, Satmetrix, RightNow Technologies,
Mindshare Technologies, Data Illusion, KeySurvey (WorldAPP), Kinetic Data, CustomerSat
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About DataGroup
DataGroup was formed in 1974 by a group of management consultants and information technology
specialists whom had previous worked with, amongst other organisations, the U.S. Department of
Commerce, Bank of America, Chase Econometrics, The Marketing Strategies Institute, the OECD in
Paris, and MITI in Tokyo. DataGroup was established in order to develop a systemised,
computerised, and uniform methodology to facilitate real world forecasting models for macroeconomic, micro-economic, market, product, and industry purposes.
For full details of DataGroups history please see: About DataGroup
DataGroup Clients
DataGroup do not publish a list of current client list due to client confidentiality; however a partial list
of client in the period 1975 to 2000 is shown here: DataGroup Client 1975-2000
Published by The DataGroup Stiftung, Vaduz, Liechtenstein. Copyright by DataGroup Stiftung. All rights reserved.
No part of the contents of this document may be reproduced for third party distribution or transmitted to third parties in
any form or by any means without the written permission of the publisher. DataGroup publications are available
worldwide only through authorized distributors.
All trademarks are recognized and are used as only an identifier and as Fair Comment as allowed in United States copyright law and the
decisions of the European Court. Microsoft, Word, Excel, Access, Windows, and associated logos and identifiers are trademarks of
Microsoft Corporation. The copyright and trademarks of the U.S. Government Printing Office, Bureau of the Census, U.S. Department of
Commerce, U.S. Office of Management and Budget, U.S. General Accounting Office, National Technical Information Service and other
U.S. Government Departments and Agencies are recognized. The copyright and trademarks of all publishers and producers of ancillary
documentation and software are recognized.
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