Today, with the globalization, companies have to establish in other countries than their origin country, to be more competitive and to resist in the market, especially in the clothing retail market. So, the main part of companies opens new subsidiaries in other countries and more on emergent markets with a good and high growth. One of the most coveted markets is this of China. Indeed, the China had an incredible growth which reached 8.7% in 2009 and in the first semester in 2010, it reached about 12%.
So, it's really attractive for companies which want to expand and increase their profits. Also, with this growth, the consumers' purchasing power increases too. So, Chinese consumers have more revenues and spend more money for consumption of current goods, in particular for clothing. Indeed, their consumption looks increasingly to the consumption in western countries. It's for that, lot of clothing retail companies started to establish in China, when the country opened in 1990's. For example, there were LVMH, Gucci, Etam, HSM, Cartier.
In this case, we are going to study the company Caroll, which is a french fashion house, and which has decided to establish in China, to become more international and attract a new target, the Chinese middle class. Indeed, this class is the most important in China and has a good growth of its purchasing power. But, to set up in new market, especially in China, we have to analyze the market environment and its differences, to adapt easier. So, the goal of this study is to design a strategic marketing plan for Caroll in China. To achieve it, we will analyze the company (overview, history, SWOT). Then, we will do a market audit of China (PEST, clothing retail market, competitors). Finally, we will make a strategic marketing analysis. We will use some tools (7Ps, Boston Box, Ansoff matrix).
[...] Direct competition also includes Chinese brand and other international brand less present in the French textile market. Indirect competitors = Indirect competition is includes counterfeits of luxury brands (for example, Chanel, Dior, Gucci In fact, there is in China, the biggest counterfeits shop in the world. But, the Chinese have the reputation to like real and true luxury product. It's another indirect competition with brands as Dior or Louis Vuitton which know a very good success in the Chinese market. [...]
[...] So, the goal of this study is to design a strategic marketing plan for Caroll in China. To achieve it, we will analyze the company (overview, history, SWOT Then, we will do a market audit of China (PEST, clothing retail market, competitors, Finally, we will make a strategic marketing analysis. We will use some tools (7Ps, Boston Box, Ansoff matrix Situation analysis of Caroll Overview of Caroll In 1963, Raphael Levy and Joseph Bigio created Caroll, a new brand to conquer women who feel good about themselves and who want the same thing in their clothes. [...]
[...] Indeed, Caroll has to enter a new market: the middle class. And it will be easier to start with its current collection, just adapting some colors and sizes. CONCLUSION The consumption of clothes in China is going to increase in the next year too. So, it's a great opportunity to establish in this country before the market will be saturated by all competitors. Caroll has to entry in the market now, because there is already lot of French market. Also, there is no real competitor for this company because its target is the middle consumers. [...]
[...] So, there is a big opportunity for it, to gain and loyal consumers. Then, its target is urban, and more and more Chinese people become urban. So, this target will increase again, in next year. But Chinese consumers are really difficult. So, we have to adapt to their needs and expectations. [...]
[...] This proves, Caroll follows trends and adapts to new way to consume. Then, there are other services like advices from stylists and professionals fashion which help consumers for their “look”. So, this dynamism constitutes one of the strength of Caroll, which finds the good middle between trendy fashion and mass consumption, stylists and normal consumers. SWOT analysis STRENGHTS WEAKNESSES Good finances: thanks to belong to Not luxury brand like Dior, Louis Vivarte group Vuitton: don't embody the glamour; Good notoriety High prices for its no positioning Good brand image in luxury sector. [...]
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