Globalisation for Fashion Brand Charlotte Olympia - Essay Example

Globalisation for Fashion Brand Charlotte Olympia Introduction Charlotte Olympia seeks various markets that will create a stable demand for their products and services for sustainability. Since the competition in some markets is cut-throat, it this limits the profitability and growth of the company. As such, they have to look for various avenues to enhance their productivity so that they can increase the levels of income (Blokker and Dallago 2008:12). Concisely, the emergence of globalisation has helped many establishments to curve a niche in the population since many individuals use their products and services frequently. Evidently, the growing need for different fashion trend is a pull factor that has instituted internationalisation of the business. As such, inception into the china market is a prudent approach for the firm. For example, Nike is a renowned product in the world due to its awareness campaign, online marketing approaches, global presence and brand strategy. However, the firm has to incept reluctance action since it has to conduct a series of market researches to ascertain the viability of the market. Incidentally, Charlotte Olympia has an established store in the United Kingdom, and it is among the advanced shops in the fashion industry. Thus, this paper will focus on the possible avenues that should be used in introduction of Olympia brand in the global perspective especially in China. Business Strategy For Olympia brand to grow in the china and Europe market, the administration has to involve various perspectives to achieve a substantial share. Notably, many businesses have both short term and long-term priorities to thrive in trade and this are some of the core factors that define success. For example, the firm may consider introducing of new product lines since the customers are aware of their presence. For example, Charlotte Olympia brand primarily focused on women’s footwear and accessories. However, the firm has other labels for young girls and slipper for men, which enhances the identity of the products that use the name. Thus, the first approach is aggregation, where the company uses the distinctive processes used in the original country to attract a larger demand in a new nation (Gregory 2010:8). Incidentally, the consumer behaviours are similar in different states, and this allows different establishments to use the identical methods in different marketplaces. For example, the management of Levi’s creates an emotional connection to enhance the relevance of brand in different markets and guarantee loyalty. Incidentally, Charlotte Olympia in United Kingdom has six distinct collections supplied in the United Kingdom market for reliability and consistency. Primarily, focus on the china market is appropriate due to the macro and micro economic factors. Illustratively, the economy of china is growing rapidly, and this is an advantage to establishments in the area. Similarly, the growing population initiates an increase in demand. Additionally, the exchange rate between the dollar and the yen gives the company benefits especially when products are exchanged between the two countries. Secondly, the firm can opt to use the adaptation strategy, which states that a business provides products to a country depending on the competitiveness of the markets. For example, many markets prefer specific types of merchandise due to the additional benefits. A specific example is OAKLEY’s provision of electronics worn by customers and they are termed as “must have” style. For illustration, the trendy company provides MP3 sunglasses to entertain their customers although they are apparels (Best and Barnwell 2008:6). More so, the firm will have to devise specific practices recognized in the environment so that the customers feel the products were meant to solve their problems. In this case, Olympia brand has to enhance the development of leather handbags so that it attracts a larger market niche for its products (Pahl, Richter and University of Applied Science Berlin 2007:16). In fact, this strategy is one of the success stories of Olympia brand in the UK since many customers are attracted to their specific merchandise although the firm operates in a market that is saturated with established fashion labels including FUBU, Calvin Klein, Burberry and Astley Clarke. SWOT Analysis For any business to succeed, it has to consider an intensive SWOT analysis in the market to ascertain the chances of growth. Principally, the strength and opportunities give a business a boost in a market since there is improved efficiency and effectiveness. On the other hand, the weaknesses and threats are a disadvantage to the firm as it may plunge to losses. Firstly, the European and china market has strong prospects of growth due to the proximity to high-end markets (McManus, Li and Moitra 2007:11). It is noted that china and Europe are amongst the world’s leading economies in the world; hence they have ability to consume high-quality products. In fact, China and Europe are amongst the world’s most populated places, and this forms a basis of a market. In such markets, businesses have an advantage since they can sell the products at the preferable prices. More so, the market has improved differentiation and specialization that gives the companies a chance to adapt to the customer preferences. Basically, the firms have an opportunity to provide tailor made products and services to fit the needs of the customers. Nevertheless, the intensity of technology in the two regions is an advantage to the business as it will improve in the quality and quantity of production (Dumas 2010:17). In fact, the regions have a high rate of innovation, and this is advancement to establishments. Secondly, the Olympia brand has to focus on the opportunities in the markets as this defines the growth rate. For example, the population growth rate is an advantage to the establishment since the increase in number of people increases the demand for products. Notably, china has an estimated 0.5% increase in number of people every year. Nevertheless, the region has cushions that protect the economy against unforeseen shakes including inflation and financial crisis. Principally, the markets in china and Europe have devised various strategies to encounter uncertainties especially after the financial crisis that was experienced in 2008 (Telò and Ashgate Publishing 2013:13). More so, introduction of energy efficient solutions is an advantage since the firm will spend minimal amounts on the sources of power. Additionally, the introduction of new technology in supply and distribution of products annihilates high costs of running business. For illustration, use of solar power and sophisticated technology that consumes limited energy gives the Olympia brand an advantage over the other fashion brands. Resultantly, the organization is prepared to provide products and services to the market at the appropriate time and Olympia brand will be prevalent in the market due to low costs involved. Thirdly, the Europe and china market has numerous disadvantages in form of weaknesses. For example, there is a dependency on imports in the countries. As such, the market perceives products from other countries as superior merchandise as opposed to the others. More so, the increase in the literacy levels and specialization increases the cost of labour, and this could reduce the profitability of the merchandise Rodrigues and Fundação 2009:18). Additionally, the demand for skilled people continues to rise, and this leads to a reduction in the supply of such labourers. For example, experts in certain fields like fashion may be in limited numbers, and this is a setback to the Olympia brand. Resultantly, the firm may have to spend colossal amounts in this approach or work without engineers. Fourthly, the firm has to consider the threats, and this includes the rigid legislations that govern labour. Although the market conditions change, the labour regulations do not, and this adversely affects businesses. Additionally, the fluctuation in demography creates a structural disadvantage especially with the larger percentage of senior citizens. Basically, this approach decreases the competitiveness in labour (Wunderlich 2007:9). Lastly, the rising costs of raw materials, rigidity in cross-border transaction and global deflation limit competiveness in the markets. For example, the unstable oil prices destabilize the costs of transporting materials used in the fashion industry hence, unstable value of the merchandise. Thus, the managers of Olympia brand have to consider various solutions to the weaknesses and threats so that the business can be profitable. However, it should rely on the strengths and opportunities to enhance competitiveness. Additionally, the firm has a viable marketing mix that will be instrumental in its success. First, the company involves economies of scale in production, and this reduces the costs of merchandise. Resultantly, the products will be retailed at a lower price as compared to the competitors. Secondly, the firm operates in a highly volatile market where the quality of products defines the demand. Since the organization focuses on high-quality production, it is in a position to compete effectively. Thirdly, the promotion and marketing of its products is well-choreographed to attract a larger market. Eventually, the firm will be in a position to serve most of the demands in the marketplace. More so, the firm has myriads of ads that can be used to sensitize the market in accordance with the products that are offered. Notably, companies have to engage succinct marketing activities so that brand awareness is improved. Lastly, China is a country that records constant economic growth. As such, the people have an increase in income levels, and this sparks increased expenditure. Therefore, the individuals are likely to use such amounts to purchase products by the charlotte Olympia brand. Conclusion China and Europe markets are developed, and this attracts investors. Thus, introduction of new businesses is prudent approach. However, the firm needs to consider adaptation, arbitration and aggregation strategies to allocate a sustainable demand. Additionally, the firm has to consider the strengths, weaknesses, opportunities and threats for sustainability. Thus, reflection on the aforementioned factors can enhance prevalence of the Olympia brand in the two regions. References Best, N. & Barnwell, H. (2008) CIMA: Paper T4, Oxford: Elsevier. Blokker, P. & Dallago, B. (2008) Youth entrepreneurship and local development in Central and Eastern Europe, Aldershot, England: Ashgate. Dumas, C. (2010) Globalisation fractures: how major nations interests are now in conflict, London: Profile Books. Gregory, A. (2010) Planning and managing public relations campaigns: a strategic approach, London: Kogan Page. McManus, J., Li, M. & Moitra, D. (2007) China and India: opportunities and threats for the global software industry, Oxford: Chandos. Pahl, N., Richter, A. & University of Applied Science Berlin. (2007) SWOT analysis: idea, methodology and a practical approach, Munchen: GRIN Verlag. Rodrigues, M.J. & Fundação, C.G. (2009) Europe, globalisation and the Lisbon Agenda, Cheltenham, UK: Edward Elgar. Tandon, Y. (2009) Development and globalisation, Oxford: Fahamu Books. Telò, M. & Ashgate Publishing. (2013) Globalisation, multilateralism, Europe: towards a better global governance? Farnham: Ashgate. Wunderlich, J.U. (2007) Regionalism, globalisation and international order: Europe and Southeast Asia, Aldershot, England: Ashgate. Read More