Recommendation Report for Martina Spetlova

RECOMMENDATION REPORT MARTINA SPETLOVA GOING TO HONG KONG

INTERTWINED

T H E 8 K E Y F I N D I N G S O F T H E H O N G KO N G M A R K E T

01

02

03

04

Hong Kong is connected to half the world’s population

Luxury fashion sales is slowing down, but emerging brands rise

Growth of middle class

Luxury consumers become more sophisticated

Gateway to many Asian countries

Emerging brands will have big opportunities in the future Hong Kong market

Young people constitute a new and powerful consumer force

Luxury consumers increasingly look for unique products

05

06

Hong Kong consumers are very brand and fashion conscious

Hong Kong is Western oriented

Consumers spend a lot on apparel and prefer to buy brands that signal a higher social and economic status

People in Hong Kong speak English and have the same social media range than Western countries

07

08

No Taxes No taxes attract many tourists and lead them to buy more

Hong Kong is a strategic location for retail brand Being successful in Hong Kong helps to build up brand awareness and credibility in the region

K E Y FA C T S O F T H E H O N G KO N G M A R K E T SUSTAINABILITY Hong Kong’s consumers attitude towards sustainable luxury garments and handbags Luxury garments

47.37%

Luxury handbags

47.37%

Would buy sustainable, but more expensive garments/handbags Sustainability when it comes to luxury garments/handbags:

63.16% 21.05%

50

54.56%

Neither

38.38%

Unimportant

15.79%

5.26%

Important

Would buy sustainable luxury garments/handbags from an unknown brand

78.95%

Would need to consider different criteria to buy sustainable luxury garments/handbags from an unknown brand

Are open for new sustainable luxury brands from Europe

63.16% 100%

5.56%

15.79%

73.68% 36.84%

Say it depends on different criteria

lack of consumer awareness about sustainable fashion

58%

K E Y FA C T S O F T H E H O N G KO N G M A R K E T MIDDLE CLASS INCOME BETWEEN 10.000 AND 40.000 HKD

2.500.000 2.000.000 1.500.000 1.000.000

Male 500.000

Female Both Sexes

0

2005

2006

2007

2008

2009

2010

2011

2012

10 YEARS – 34.5% GROWTH

2013

2014

K E Y FA C T S O F T H E H O N G KO N G M A R K E T BRITISH LUXURY BRANDS High Price

Low Quality

High Quality

Low Price

K E Y FA C T S O F T H E H O N G KO N G M A R K E T TOURISTS 70

60.8 Million Visitors in 2014:

60

+ 5,7%

50 40

Rest of the World

30

Mainland China

20 10 0

2000

2003

2005

2006

2007

2009

2010

2011

2012

2013

2014

K E Y FA C T S O F T H E H O N G KO N G M A R K E T Hong Kong consumers spend 4x more on apparel Hong Kong is a strategic location for retail brand in Asia

Gateway to 3,7 million high-net-worth individuals (HNWIs) in Asia-Pacific Being successful in Hong Kong has helped to build up brand A value share of 90% in luxury accessories was accounted for by luxury bags, with over two thirds coming from women’s luxury bags

awareness and credibility in the region

Strongest wealth growth in Asia-Pacific at 12%

By 2020, est. no. of millionaires in Mainland China and Hong Kong will reach 3,7 million, an accumulated wealth of £9

billion

T H E K E Y F I N D I N G S O F M A R T I N A S P E T L O V A G O I N G T O H O N G KO N G Strengths and Weaknesses of Martina Spetlova

• • • • • • •

Made in Europe High-quality products Strong design Strong innovation Sustainable supply chain Focusing on green initiatives Launching a handbag range

• Increasing brand awareness in Hong Kong • Accessing the other Asian markets • Opening a niche production in China • Reaching target costumers from all over the world

S

W

O

T

• • • • • •

Lack of brand awareness Lack of presence in some markets Low capacity Weak advertising strategy Low product range High production costs

• Though existing competition • Increasing number of new designers • Product counterfeiting

Opportunities and Threats of emerging in Hong Kong market

R E C O M M E N D A T I O N F O R G O I N G T O H O N G KO N G DESIRE OF WESTERN PRODUCTS DUE TO BETTER QUALITY GROWING MIDDLE CLASS WANTS TO SPENT MONEY CONSUMERS INTERESTED IN SUSTAINABILITY EASIER ACCESS IN OTHER ASIAN MARKETS GROWING WEALTH AMONG CONSUMERS RISING BRAND AWARENESS IN ASIA NO SIMILAR SUSTAINABLE BRAND EMERGING BRANDS ON THE RISE UNIQUE/INNOVATIVE DESIGN EASY ACCESS THROUGH WESTERN SOCIAL MEDIA AND ENGLISH SPEAKING CULTURE HIGH MAINLAND TOURIST SPENDING BECAUSE OF LOWER PRICES DUE TO TAX FREE PRODUCTS

B I B L I O G R A P H Y Page 1: Martina Spetlova (N.D.). | Logo and Fashion Collection. [IMAGE] | Available at: http://www.martinaspetlova.com Worldatlas (N.D.). | Hong Kong Map. [IMAGE] | Available at: http://www.worldatlas.com/webimage/countrys/asia/outline/hkout.htm Page 2: 123rf (N.D.). | Mannequin Icon. [IMAGE] | Available at: http://www.123rf.com/clipart-vector/mannequin_icon.html?mediapopup=40441511 Clker.com (2010). | Shopping Cart Clip Art. [IMAGE] | Available at: http://www.clker.com/clipart-shopping-cart.html Deviant Art (N.D.). | Growth Symbol. [IMAGE] | Available at: http://zeezedzee.deviantart.com/art/Wall-e-Directive-T-Shirt-175809970 Find Icons (N.D.). | Airplane Symbol. [IMAGE] | Available at: http://findicons.com/icon/557492/airplane_takeoff Icons (N.D.). | Currency Symbol. [IMAGE] | Available at: https://icons8.com/2013/10/18/cad-hkd-sek-currency-sign/ Pixabay (N.D.). | Magnifying Glass Symbol. [IMAGE] | Available at: https://pixabay.com/de/lupe-lupen-glas-vergr%C3%B6%C3%9Fern-160478/ Wikimedia Commons (2015). | Hong Kong Flag. [IMAGE] | Available at: https://commons.wikimedia.org/wiki/File:Flag_of_Hong_Kong.svg Worldatlas (N.D.). | Europe Map. [IMAGE] | Available at: http://www.worldatlas.com/webimage/countrys/europe/euoutl.htm Page 3: Free Vector (2014). | Woman Symbol. [IMAGE] | Available at: http://www.freevector.com/man-and-woman-symbols-graphics/ Institute for Sustainability (N.D.). | AIChE’s Sustainable Meeting Initiative. [IMAGE] | Available at: http://www.aiche.org/ifs/resources/sustainable-meeting-initiative Lea Tumczyk (2015). | Sustainability in Hong Kong when it comes to Luxury. [SURVEY] Martina Spetlova (2015). | Fashion Collection. [IMAGE] | Available at: http//www.martinaspetlova.com Page 4: Census and Statistics Department (2015). | Labour Force. [ONLINE] | Available at: http://www.censtatd.gov.hk/hkstat/sub/sp200.jsp?productCode=D5250030 Deviant Art (N.D.). | Growth Symbol. [IMAGE] | Available at: http://zeezedzee.deviantart.com/art/Wall-e-Directive-T-Shirt-175809970 Page 5: Business 2 Community (2014). | Burberry Logo. [IMAGE] | Available at: http://www.business2community.com/fashion-beauty/top-5-fashion-brands-using-social-media-keystrategy-0950789#!bjOeP9#M4h1lHx1rdF001yK.97 ELLE (N.D.). | Die Printbewusste Mary Katrantzou. [IMAGE] | Available at: http://www.elle.de/mary-katrantzou-74957.html Fashion Week (N.D.). | Paul Smith Logo. [IMAGE] | Available at: http://fashionweek.com/paul-smith-watches-to-be-wholesaled-in-the-uk-in-august/paul-smith-logo/ Fragrantica (N.D.). | Stella McCartney Logo. [IMAGE] | Available at: http://www.fragrantica.com/designers/Stella-McCartney.html I.T (N.D.). | Simone Rocha Logo. [IMAGE] | Available at: https://www.ithk.com/eng/html/brands/SIMONE_ROCHA Kildare Village (N.D.). | Mulberry Logo. [IMAGE] | Available at: http://www.kildarevillage.com/en/brands/item/mulberry

B I B L I O G R A P H Y Page 5: Le Mill (2014). | Peter Pilotto Logo. [IMAGE] | Available at: http://blog.lemillindia.com/our-pre-fall-picks-%E2%80%A2-wang-pilotto-3-1-saloni/ Logo Share (N.D.). | Jimmy Choo Logo. [IMAGE] | Available at: http://logo-share.blogspot.co.uk/2014/09/jimmy-choo-logo.html Logonoid (N.D.). | Dunhill Logo. [IMAGE] | Available at: http://logonoid.com/dunhill-logo/ Polyvore (N.D.). | Alexander McQueen Logo. [IMAGE] | Available at: http://www.polyvore.com/alexander_mcqueen/thing?id=95299657 Twitter (N.D.). | Erdem Logo. [IMAGE] | Available at: https://twitter.com/erdem Vivienne Westwood (N.D.). | Vivienne Westwood Logo. [IMAGE] | Available at: http://www.viviennewestwood.com/store-locator Page 6: HKTB Insiht & Research (2014). | Total Visitor Arrival by Country. [ONLINE] | Available at: http://partnernet.hktb.com/filemanager/intranet/ViS_Stat/ViS_Stat_E/ViS_E_2014/ Tourism_Stat_12_2014_0.pdf Invest Hong Kong (2014). | Hong Kong for Business. [ONLINE] | Available at: http://de.slideshare.net/SCOTTMAI1/hong-kong-for-business Page 7: Invest Hong Kong (2014). | Hong Kong for Business. [ONLINE] | Available at: http://de.slideshare.net/SCOTTMAI1/hong-kong-for-business Luxury Daily (2014). | Hong Kong consumers spend 4x more on apparel than US counterparts: report. [ONLINE] | Available at: http://www.luxurydaily.com/ecommerce-trends-in-hongkong-report/ Reportlinker (2015). | Luxury Accessories in Hong Kong, China. [ONLINE] | Available at: http://www.reportlinker.com/p02869485-summary/Luxury-Accessories-in-Hong-KongChina.html Page 9: Worldatlas (N.D.). | Hong Kong Map. [IMAGE] | Available at: http://www.worldatlas.com/webimage/countrys/asia/outline/hkout.htm