THE NEW AVENUE TO INDIA Author: Nathalie Larsson 2019
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TABLE OF CONTENTS 4. INTRODUCTION 5.
WHY EXPAND YOUR BUSINESS?
6.
INTERNAL ANALYSIS
10.
COMPANY’S LOCAL ENVIRONMENT
20.
THE INTERNATIONAL ENVIRONMENT
30.
MARKET ENTRY STRATEGY
34.
MARKETING STRATEGY PRICING STRATEGY
36.
SALES AND DISTRIBUTION
40.
OPERATION OVERVIEW
41.
CONCLUSION AND RECOMMENDATION
42.
APPENDICES
46.
REFERENCES
3
INTRODUCTION Many times, companies have opportunities to enter in the international market but don’t have the precise knowledge to go forward. This paper seeks to create new avenues for the brand. Containing the right knowledges of interrelate environmental and social concepts to build up a sustainable, successful business. The aim seeks to add the ethical aspects in a profit driven fashion company.
SHORT BRAND DESCRIPTION Famous for her innovative, inspiring and daring designs, Vivienne Westwood has become a true fashion icon. Observing Westwood’s many works its evident she has a read thread through all collections. Something to do with provoking the audience and awakening thoughts of politics, eco-feminism and transparency. Westwood herself states that “My clothes have a story. They have an identity. They have a character and a purpose. That’s why they become classics. Because they keep on telling a story. They are still telling it.” (Vivienne Westwood, 2015) Many people called her “the women behind punk”. Among the public eye, Vivienne Westwood has been the pioneer and designer behind the punk movement and nowadays her design is loved worldwide.
BRAND ETHICAL BEHAVIOR Vivienne Westwood has referenced climate change in almost all of her collections an example is recently when she established a campaign “Buy Less” and the campaign “Save the Arctic T-shirt”. She mixes fashion projects with other attention-grabbing invites to create attention for the cause of sustainability. She´s personally active learning more of the nature of mother earth, stated by Orton “Westwood once spent a week living with a tribe in the Peruvian Amazon and donated £1-million to help protect the local rainforest, through the NGO, Cool Earth.” (Orton, 2017).
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FIGURE: Westwood in Africa, shengsequanma.com, 2017)
WESTWOOD´S EXPANSION TO “THE BRICS”
With the aim of launching in the total BRICS. Vivian Westwood already established a stable image overview in China where they are available in more than 50 distributing channels. Although the market covering the residual countries such as India, Russia, Brazil and South Africa are still low, and the brand is only available through online channels. With India’s beautiful culture rapidly growing among global brands, designers and celebrities a new avenue to the country is opened for international brands. A main opportunity launching in India considering a long-term aspect, is the country´s power to possibly become one of the most powerful economic country in the world due to of the amount of population. India is second largest country in the world by population with approximately 1.35 bil-lion inhabitants in 2018. (united nations, 2018) Although India only covers 1-2% of the total global luxury market, the luxury brands that successed to enter the market properly makes significant revenue. (Icbs.edu, 2017) Another argument to successes is due to the brands worldwide already acknowledged brand name and logo and there-fore has a good chance to directly be recognized by consumers. FIGURE: India, pintrest.com, 2019)
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INTERNAL ANALYSIS
WESTWOOD´S MISSION AND VISION The company mission and vision are not declared. Based on several statements its evident that the desire to make a statement is fundamental for the brand. The creative director at London youth style magazine states "I think she'll always command respect from any generation for going against the grain. She tries to make people think and stand for something, and to see more than just clothing." (Spencer, 2017)
WESTWOOD´S WHEEL OF VALUES
6
(Larsson et.al, 2018)
INTERNAL ANALYSIS “BUY LESS. CHOOSE WELL. MAKE IT LAST. QUALITY, NOT QUANTITY.” - Vivienne Westwood, 2018
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FIGURE: Vivienne Westwood in Africa, pintrest.com, 2019)
INTERNAL ANALYSIS
FIGURE: Vivienne Westwood ethics, pintrest.com, 2019)
VIVIAN WESTWOOD ADVANTAGE
IN MEETING NEEDS OF HER TARGET
Vivienne Westwood is working to revolution the fashion industry celebrating diversity, supporting sustainable practices and being transparent and honest fighting for their own values and ideals. Addresses issues present in currently in society, such as political and human rights, indirectly through her products. Westwood offers two categories of fashion products: - Luxury products: dresses for celebrities, wedding dresses - Premium products: clothes, shoes and accessories
DIFFERENTIATORS AND STRENGTHS 1. Unique 2. Sustainable 3. niche within bold and punk style 4. brakes the boundaries and rules of the society
STRENGTHS AND WEAKNESSES STRENGTHS
WEAKNESSES
-Innovative and unique products. -Worldwide acknowledged brand name and logo -Niche with bold, punk/rock style. -Sustainable and cares for the environment. -Supports diversity. -High quality and long-lasting products. -Strong distribution. -The brand expresses awareness of current issues of political and. -Social values. -Active on social media channels. -Attracting many celebrities wearing the products. -Strong style and ideology. -International brand. -Recognizable Style.
-Niche market and not all consumers feel attractive to the style. -A bold style for a niche target -Weak international awareness -Brand expansion to compete with competitors while keeping the unique appeal.
(Larsson et.al, 2018)
(Larsson et.al, 2018)
WESTWOOD ORGANIZATIONAL STRUCTURE CEO: Christiano Minchio Designer: Vivienne Westwood & Andreas Kronthale
Estimated Employees 143
Production UK, Italy, Africa
Sales Divison
Marketing Department
InStore Manager India
Distribution Manager
Manufactures
Sales Team
Marketing Manager
Quality control
Garments selection for distribution
InStore Manager India
Delivery Company
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Information Annual Revenue 2018: $ 52 M Gross Profit Margin: 53.3% Fans: 1.1M Facebook 1.4M Instagram 202.5K Twitter (Singh, 2018, fashionuntied.uk)
Sales Manager
Marketing Team
COMPANY’S LOCAL ENVIRONMENT
WESTWOOD UK STORES
10
COMPANY’S LOCAL ENVIRONMENT
11
FIGURE: London, travelingchic.com, 2019)
COMPANY’S LOCAL ENVIRONMENT
POSITIONING MAP UK COMPETITORS
(Larsson et.al, 2018)
COMPETITORS RATING CHART
12
(Larsson et.al, 2018)
OPPORTUNITIES AND THREATS OPPORTUNITIES
THREATS
-The brand growth keeps increasing becoming more recognizable. -Making an impact on important environmental projects -The brand has a positive impact on the environment. -Quality innovation, better quality and new ways of producing. -Long-lasting products. -Social media trend and new technology, easier to interact with end consumers and promote products. -Increase their brand awareness. -Increase the impact and influence in taboo topics (i.e. political, social, and equality).
-Up incoming designers -Ever changing trends -Competition. -The “buy less� campaign, maybe the brand lose sales through this message and consumers stops purchasing products from the brand. -Consumers choosing similar products from fast fashion. -Higher prices for raw sustainable materials and consumers may not be willing to pay more. -Upcoming designers with similar values. -Change in the economy.
FIGURE: EU, Smoked, lucylovesthis.com, 2017
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COMPANY’S LOCAL ENVIRONMENT
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FIGURE: Vivienne Westwood store UK, centralembassy.com, 2018
SWOT ANALYSIS WORLDWIDE STORES STRENGTHS -Located on streets where other highend fashion brands wich attract the right market -Unique interior -Individual style of interior -Fun and creative store events -Social media promotes store locations -big variety of sizes in stores -Broad payment methods acceptance: credit/master card and cash
WEAKNESS -Bold style of interior and shopping windows -Not available in every country -Attracting niche market -High rental costs -High staff costs
OPPORTUNITIES
THREATS
-Unique style can attract people -Exclusive product offerings increase sales -Continued market development
-Competing against other high-end brands -Online market is growing -Security -shoplifting
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COMPANY’S LOCAL ENVIRONMENT
UK PEST ANALYSIS POLITICAL
ECONOMICAL
-Strong political stability. -Brexit had enabled insecurities and doubts about the country. -Countries are interested in negotiating and inves- ting in the UK.
-Since the Brexit election, the UK’s economy has had a continuous economic growth. -The low unemployment rate, it is as low as 4% Breaking loose from the European Nation (which becomes valid in April 2019) could affect the eco- nomy negatively or positively. -Martin(2018) Forecast that without a deal the United Kingdom can suffer from a decreasing eco- nomy.
-To export to India complying for the regulations HMRC is mandatory that is responsible for the collection of taxes. (Her Majesty’s Revenue and Customs)
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SOCIAL
TECHNOLOGY
-The UK is one of the most densely populated developed countries. -Liberties and rights afforded to individuals by the authorities and government. -Public healthcare services. -Projects to care for children, the unemployed and disabled resi- dents. -Multicultural,multi.ethnic country -Immigration is contributing to a rising population -The Uk is famous for its education institution, especially its hi- gher education institutions, which attract students from all over the world. -England is a point of reference when talking about social and ar- tistic movements. -England is a country with a significant flow of tourists from all over the world as the country has a rich and vast cultural heritage.
-The UK has installed CCTV cameras for surveillance purposes. -E-commerce has expanded and today companies online sales has increased. -Free roaming for EU citizens -Communication has expanded through social media, upgraded wifi connection, and smartphones. -New apps like Uber, car to go and Lyft makes it easier and cheaper for people to travel. -Fast and well-developed delivery services make it easier for consu- mers to buy online and send back products.
(Larsson et.al, 2018)
ETHICS AND SUSTAINABILITY ANALYSIS UK NGO´s UK
NGO's is an important institution of the society, working both internationally and national in the UK to help humanity in distress. Each NGO is working in its own field addressing societal issues and restoring wildlife in nature.
2. Kickstarter A enormous global community that helps entrepreneurs such as musicians, filmmakers and designers to find the resources and support to create their ideas to reality.
List of top 3 NGO´s in UK: 1. Transparent Hands
A non-profitable organization that provides visibility of poor patients they are working towards complete transparency building a personal and trusted bond between patients and donors. Mostly working with patients from Pakistan to help fundraising crowdfunding platforms.
3. Seedrs A online company they let all types of investors invest in businesses they believe in to raise capital and business community in the process.
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FIGURE: The 2030 Agenda for Sustainable Development, gov.uk, 2018
COMPANY’S LOCAL ENVIRONMENT
ORGANIZATIONS WORKING FOR SUSTAINABILITY IN THE UK 1. 2. 3. 4. 5. 6. 7. 8.
Energy Saving Trust British Ecological Society The Wildlife Trusts Ethical Consumer Friends of the Earth Institution of Environmental Sciences Campaign to Protect Rural England Keep Britain Tidy
LAWS PROTECTING UK ENVIRONMENT
1. 2. 3. 4. 18
5. 6.
1990 ENVIRONMENTAL PROTECTION ACT Contains 9 parts protecting air pollution controls and preventing waste. including: Integrated Pollution Control and Local Authority Air Pollution Control, Waste on Land and Statutory Nuisances and Clean Air.
ENVIRONMENT ACT 1995 This act was created to deal with air quality, water quality and contaminated land.
WEEE 2007 AND ROHS WEEE- Assures waste of electricity and electronic equipment in order to recycle and recover it. RoHS- The regulation limit the use of hazardous substances such as leas and cadmium.
ENVIRONMENTAL PERMITTING REGULATIONS 2010 (England and Wales) These regulations make sure transport, treatment and disposal waste makes sure its not harmful to human health and environment.
THE WASTE FRAMEWORK DIRECTIVE Requires member states in the European Union ensure waste is recovered without endangering human health.
ESOS A EU legislation that is mandatory in almost 14000UK companies to control their energy usage.
GREENHOUSE GAS EMISSIONS REDUCTIONS The UK have both domestic and international greenhouse gas emissions reductions targets: 1. The Kyoto Protocol 2. The Climate Change Act 2008 3. EU Effort Sharing Decision
1. THE KYOTO PROTOCOL Great Brittan signed the Kyoto protocol in 1998, the Kyoto Protocol is an international treaty including 192 parties, the Kyoto protocol implements reduces of greenhouse gas emissions, global warming. The head of international climate, Mr. Archie Young is in change for Great Brittan and Northern Irelands carbon markets, climate change and change negotiations. (Figure 3) The Uk has an international target for reducing greenhouse gas emissions.
2. THE CLIMATE CHANGE ACT 2008 Established a long-term legally binding framework to reduce GHG emissions, commiting the UK to reduce emissions by at least 80% until 2020.
3. EU EFFORT SHARING DECISION An policy framework with the aim to collectively amounting to a 30% cut in emissions by 2030 including transport, building and heat. An 28 member states of the European Union.
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FIGURE: London, travelingchic.com, 2019)
THE INTERNATIONAL ENVIRONMENT - INDIA
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FIGURE: India, Pintrest.com, 2019)
INDIA PEST ANALYSIS POLITICAL - Being one of the largest democracies in the world India runs on a federal form of government. Accordingly, the business environment is affected by multiple political factors. Such as the well-developed taxation system, income tax and sales tax. - Indian Parliamentary election coming up 2019 (Strong players: SP and BSP in every set of state) In the 70-odd years since India´s independence, therefore this could be the most crucial in indias history it is the first serious challenge for the country’s inclusive political culture. (Mukhopadhyay, 2018) - A challenge for the Indian alliance is the ticket distribution for 2019, other important facts raised for the election is the job challenge and the Judhe Loya´s case. - The BJP will try to convince the Hindu majority to vote along sectarian lines - Hence India isn’t a single national market, separate region plans for distribution is needed to cover cultural preferences and different industry clusters. (Figure 1) - There are 3 Types of Registered Companies in India: Public, Private & One Person Company
ECONOMICAL - The economy of India has significantly been stable since 1991, when the introduction of the industrial reform was introduced. The result as per policy has resulted in constant improvement of the economic environment. -“The country registered a GDP of $5.07 trillion in 2013 following a further improved GDP growth rate of 5% in 2014 as compared to 4.35% in 2013.” (pestleanalysis.com, 2014) - Major revolution in the Indian retail sector due to the heavily growing real estate industry in India, “consequently luxury brands generally launch their stores in the new luxury malls or hotels” (DR.Jain, 2018) - “The startup ecosystem in India has been witnessing an exhilarating growth backed by increasing smartphone and internet penetration.” (upwork.com,2018) -E-commerce industry are increasing and are set to record high growth (upwork.com,2018) -“with Value Added Tax (VAT) you can zero-rate the VAT on most goods you export to India. You will need to get evidence of the export within 3 months from the time of sale.” (gov.uk, 2018) - “The Indian retail market, currently estimated at $490 billion, is projected to grow at a compounded annual growth rate of six percent to reach $865 billion by 2023.” (U.S. Embassies abroad, 2018) - Due to rapid growing real estate market in India an opportunity for luxury brands can open new avenues for store locations. According to the chairman of Anarock property “the retail sector is pegged to grow by 60% to reach US $ 1.1trillion by 2020.” (Puri, 2018)
SOCIAL
TECHNOLOGY
- Due to the high population number of India (1.3 B, 2017) 70% of the population is in the ages of 15-65 and therefore the pension costs is in a considerable rise and the increase of employment of elder workers.
- Increase in the internet service that provides the launch of 3G and 4G services all over India for affordable prices.
- According to the “Companies Act 2013/ section 135” requires companies to spend 2% of their net profit on social responsibility projects of India.
- High product development due to the county’s processes in one of the strongest IT sectors in the world. - Recently India tries to launch their own satellites into space. (pestleanalysis.com, 2014) -India have the 3rd largest number of internet subscribers and the 2nd largest smartphone market (Ukibc.com, 2016)
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THE INTERNATIONAL ENVIRONMENT - INDIA
ETHICS AND SUSTAINABILITY ANALYSIS INDIA LAWS PROTECTING INDIAN ENVIRONMENT
1. 2. 3. 4.
THE NATIONAL GREEN TRIBUNAL ACT, 2010 Aims to provide establishment for the effective and expeditious disposal of cases related to environment protection and protection of forests and other natural resources.
THE AIR (PREVENTION AND CONTROL OF POLLUTION) ACT, 1981 An act to provide control of Indian air pollution, providing air quality standards and reducing fuels.
THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT, 1974 The Water Act works to provide and control the water pollutions as well as maintain the wholesomeness of water in India. The law is built up by CPCB which stands for prevention and control standards for water.
THE ENVIRONMENT PROTECTION ACT, 1986 Protects the framework for environmental safety and responses to situations threatening the environment. Laying down systems of speed and adequate responses by an umbrella legislation.
ORGANIZATIONS WORKING FOR SUSTAINABILITY IN INDIA 22
1. Navalt, Kerala 2. Avani- Kumaon 3. Reblenish Earth 4. GreenObazaar 5. Daily Dump 6. Aadhan 7. Aspartika Biotech 8. Oorja Energy Engineering
KYOTO PROTOCOL INDIA India reifies their 2nd commitment period of the Kyoto protocol on the act. With this, India became the 80th country to sign and accept the protocol regarding the 2nd commitment. However, the 2nd commitment is not in force, although the period stared in 2013. This is due to the country’s large scale of people the greenhouse gas emissions takes time to reduce. The Indian government states that they wants to show climate leadership and send signals to the world and mostly towards Donald Trump.
NGO´s INDIA
The NGOs India is committed improving and protecting social justice, sustainable development and human rights. Access to information and freely communicate is a basic human need, NGO´s are improving the information availability and strives to develop an ideal medium for the participation of a trusted source of quality information. List of top 3 NGO´s India:
2. Khel Khel Mein Foundation: A foundation that works towards establishing sport models in low economy schools and communities. Hosting events like football tournaments for 2000 children.
List of top 3 NGO´s in UK:
1. Tech for India
A worldwide group that works to build movement of leaders working together to provide high quality school education for all children.
3. CINI-Children in need institute An international humitarian organization aimed to mojor community developments such as promote sustainable development in health, education, adolescent and help for women in need.
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THE INTERNATIONAL ENVIRONMENT - INDIA
SWOT
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COMPETITOR ANALYSIS
STRENGTHS -Strong heritage and legacy -Recognizable patterns and designs: trench coat, check pattern -linked to celebrities and influencers -Most known British fashion brand -Presence in 50 countries -Well established in India -See now buy now -Highly sustainable and etichal
WEAKNESS -Large amount of plagiarized designs -Niche Market due to high prizing -Damaged name due to football hooligans and therefore associated with “chavs”
OPPORTUNITIES
THREATS
-Expansion further into middle east and China -Can create more affordable sub brands to reach a broader target -Attractive for celebrity endorsements -Host more Burberry shows in different cities
-Competition copying designs -Competitors offers lower prices for similar products -New trends could leave the brand behind
WESTWOOD PRIMARY COMPETITOR
STRENGTHS
WEAKNESS
-Relies on the word of mouth to receive awareness -High Quality -Highly recognizable design patterns and colors -Global premium brand -Apparels wholesaled to 35 countries witch increases distribution network -Well established in India
-Limited brand awareness due to not high investments within marketing compared to other lifestyle driven brands -Many fake imitations of the brand -In need of generating more consumers
OPPORTUNITIES
THREATS
-Fashion segment is fast growing -Enhance online sales and decrease cost on official stores -Social media channels are growing and will make it easyer to connect personally with consumers -People of today are more willing to spend money on premium brands
-Competitive market -Easier for new entrants to establish a good brand with the advantage of social medias and VCs
WESTWOOD SECONDARY COMPETITOR
COMPETITOR ANALYSIS
SWOT
25
THE INTERNATIONAL ENVIRONMENT - INDIA
Low
Business growth rate
High
COMPETITORS BCG ANALYSIS
High Relative position (Market share)
26
Low
High Low
Business growth rate
High
Low
Relative position (Market share)
27
THE INTERNATIONAL ENVIRONMENT - INDIA
PORTER’S FIVE-FORCES MODEL
RIVALRY AMONG EXISTING COMPETITORS: -11 competitors in total - The diversity between competitors is very broad due to the origin of country - The concentration within India is high, due to few direct competitors with similar style
THREATS OF NEW ENTRANTS: - Threats of new entrance can appear in the long term due to India’s growing luxury market - Due to more new brands entering the market, consumers can become more brand loyal (therefore its important to create a stable brand image when entering India)
-High growth within the Indian luxury industry -Luxury consumers are not so brand loyal, they like to experiment with new desdigns
BARGAINING POWER OF SUPPLIERS: - Vivienne Westwood stock facility is the only number of supplies
THREATS OF SUBSTITUTE PRODUCTS: -The threat of substitutes are low, due to the designers unique design -However, substitutes like accessories and perfumes is similar but with a wide price range (see example on p. 33) -Costs are switching due to high competition on the market and Indians buying decisions (see example on page 30)
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BARGING POWER OF BUYERS: -With consumers culture of researching prices and quality before buying the bargaining power is high and affects the market greatly. (example p.29) -Although, the premium market is not as usual to barge at and therefore the market for Westwood have a stable bargaining power. - The category of luxury consumers is niche, althogh the once that purges buy a lot. The market for luxury follows the Pareto Principle, 20% of the luxury consumers buys for 80% of the retailing.
CROSS CULTURAL PURCHASING PATTERN ANALYSIS Indian consumers are very different comparing with the west or especially China. The Indian culture, values conscious purchasing and the Indian consumer are always looking for a good barging. People have a good overview and seek to search for information regarding comparing prices internationally of high fashion brands. The consumer often finds a more affordable solutions to purchase luxury goods in Singapore, London or Dubai. Therefore, when launching in India it’s important for Westwood to remain a similar pricing strategy as remaining countries. A new consumer pattern during 2018 has been experimenting with colors and styling regardless of age. Consumers have become bold trying new emerging brands and are not conventional pattern buyers anymore. However, when it comes to high luxury the logo plays an important role to show consumers are very brand conscious and logo-centric. Therefore, women’s luxury accessories such as sunglasses and bags are highly coveted. Quality and craftmanship is a selling point for the brands although it’s not a desire, it is the prestige that people associate with the brand and therefore in the end pays for. “it is the perception of the brand in India that is either making a brand successful or is creating struggle.” (Dr. Mishra and Dr. Jain, 2018) An important historical factor to take in consideration is from the 1858, then known as the British India, when it was directly ruled by the British crown as a colonial possession of the United Kingdom. The history can be a positive marketing factor for Westwood, due to its heritage from United Kingdom, many people today still have very high thoughts considering of Brittan. It’s as well a positive entry factor considering communications, due to the populations high language skills of English.
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MARKET ENTRY STRATEGY
MARKET ENTRY STRATEGY Westwood will enter India through a Greenfield investment strategy that will provide a full control of the brand. With the help of Westwood´s own key account managers and sales men that will directly handle to department stores and multiband chains. Westwood will recruit the best in the market to acquire knowledge and expertise of the existing market. Westwood will also bring a well-qualified manager with the experience of launching the brand in other countries. By bringing an experienced and professional crew the company will contain its values and a worldwide guaranteed quality. However, two flagship stores will open through franchising. In India, luxury retailing is confined to the three metro cities- Mumbai, Delhi and Bangalore. According to (Amarnath, 2012) the bigger request for luxury is in Delhi and after that Mumbai. According to the director at Genesis luxury that has brought in luxury brands as Paul Smith, Burberry and
Jimmy Choo “North Indians are more flamboyant and ostentatious in their display of wealth, hence they shop for luxury items more openly,” (Kapoor, 2012) Therefore, Westwood´s key market will in the two metro cities, Mumbai and Delhi (Figure1). The Greenfield investment strategy is chosen hence its large potential to provide above average return and it will provide full control for Westwood for closed contracts with end consumers. The disadvantages of entering with a Greenfield strategy is the high costs and not covering the acquired knowledge and expertise. Therefore, the entering strategy will be covering two strategies, Greenfield and Franchising. The franchising system offers a broader package of rights, resources and low political risks. It will allow the expansion to cover low costs and operate franchisers that have a broad knowledge over the industry.
30
FIGURE: Capital Trumps Commercial, economictimes.indiatimes.com, 2012
THE MARKETING ENTRY STRATEGY ACTIVATION:
31 FIGURE: Map of India, e-politikk.no, 2018
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VIVIENNE WESTWOOD X ANAMIKA KHANNA
MARKET ENTRY STRATEGY
VIVIENNE WESTWOOD X ANAMIKA KHANNA
VIVIENNE WESTWOOD X ANAMIKA KHANNA
When entering a new market its key to respect and adapt culture, history and social factors. To create a nice in India with a personal and local connection Westwood will create a collaboration with the Indian fashion designer Anamika Khanna creating a limited-edition collection available in the 2 flagship stores of Westwood India and onlie. Khanna is best known for her act of presenting India’s rich craft encapsulated in global contours. The brand is also active working with meliorate India’s environment and strives for sustainability. Ethics in business and related concepts are key elements in fashion nowadays, and this concern will grow in the near future, Therefore, by adapting this trend Westwood have the opportunity to be one step ahead of its competitors. Innovative marketing strategies and campaigns will be created within regions, as well different brand ambassadors to make stronger local connection. The aim with the collection will be to bring Indian consumers back in time again.
33
MARKETING STRATEGY
MARKETING STRATEGY PRICING STRATEGY Due to the Indians culture seek to originate to create a good overview of prices over the luxury fashion market before buying. Therefore, when launching in India, an important fact is to keep a similar overall prizing strategy of the international market. Therefore, a competitive pricing strategy have been chosen by penetrating the market with a pricing strategy based on what competitors are charging. To automatically match all products of competitors a productive and beneficial solution will be by using e-commerce technologies such as, competitor price tracking software for a profitable decision. (Figure 2) A great advantage by using the competitive pricing strategy is the broad overview and control of other competitors. Example for pricing strategy for cashmere scarf:
34 £ 275
£ 312
£ 550
COMPETITOR POSITIONING MAP
PRESTIGE PRICE
Hermes
Versace
Dior Louis Vuitton
Neeta Lulla
AAshni + co
Paul Smith
MASS MARKET
Burberry
EXCLUSIVITY Anita Dongre
Sanjay Garg
Anamika Khanna
AFFORDABILITY 35
SALES AND DISTRIBUTION
SHIPPING GODS
36
According to Westwood´s entry strategy its crucial to include ethical and sustainable values, as well within the shipping prosses. Accordingly, all shipping will be transferred by ship by FTA that is active for transporting goods with sustainability (fta.co.uk). The shipping will be done from the UK where the company has its inventory with quality controls and selection for distribution. The lead time from UK to India will take 20 days sent by FTA. Packages can give immeasurable amounts of pollution across the globe, therefore eco-friendly filling materials will be used by Mushroom packaging (ecovativedesign, 2019). The brand will also try to reduce size and volume of packaging to improve the carbon footprint, more compact packaging can also improve the company’s investments in shipping.
SALES AND DISTRIBUTION
37
SALES AND DISTRIBUTION
DISTRIBUTION CHAIN PRODUCER
UK INVENTORY
WESTWOOD SALES AGENT
RETAILERS
(Multiband chains, department stores and franchising stores)
38
CONSUMER FIGURE: The Collection Mall India, Pintrest.com, 2018
DISTRIBUTION CHANELS DEPARTMENT STORES
DELHI MUMBAI
FRANCHISING STORES
39
FIGURE: The UB Mall India, Pintrest.com, 2019
40
OPERATION OVERVIEW
OPERATION OVERVIEW
CONCLUSION AND RECOMMENDATION After creating the market entry plan for Westwood in India, it can be seen that the brand has big potential to grow and prosper a sustainable business. By choosing the right skills and building a modern, responsible and preferable strategy, giving Indian´s a unique approach to luxury sustainability with a daring style of punk. Vivienne Westwood’s path to success is based on; the collaboration with the Indian well-established designer Anamika Khanna, the high-quality recruited sales and marketing team and lastly the good knowledge of competitors, which makes it quite unique. According to Westwood’s entry strategy into the Indian market it’s expected to receive broad media coverage and a large number of collection sales.
41
APPENDICES
APPENDICES (Figure 1) “Gucci and Hugo Boss had three stores in India as opposed to 35 and 86 respectively in China. The math done by a 2010 CII and AT Kearney Report is indicative of the low penetration of luxury brands in India. And in this not-so-level playing field, Delhi and Mumbai account for nearly 25% of the stores.� (Amarnath, 2012)
(Amarnath, 2012)
42
(Figure 2) Pricing Strategy- competitive pricing strategycompetitor price tracking software.
FIGURE: competitor price tracking software, blog.prisync.com, 2018
(Figure 3) (unfccc.int, 2018)
43
(Figure 3) (publishing.service.gov.uk, 2013)
(Figure 3) (publishing.service.gov.uk, 2013)
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By: Nathalie Larsson
Marketing Ethics and International Markets
Course and Level, year BA Fashion marketing & communication, Level 6, 2018-2019 Teatchers: Clara Mallart and Sergio Costa Subject Coursework: CWK2 Word count: 1809