Doing Business in Emerging Markets Harvard Case Solution & Analysis

Introduction

             China is considered as one of the most powerful and the leading country in the apparel industry in China. The apparael industry is one of the most powerful industry in the manufacturing sector in China. China is also one of the most largest countries in the world in the apparel market. In our daily lives we buy many clothing products as we come across many products that have tags placed upon them saying that the product is made in China.

This is where from we can see that the China is oen of the largest exporter of the clothing products and it has one of the largest apparel market developed and this is the reason that most of the Chinese Companies are successful in this market and it is also one of the reason due to which most of the international clothing companies around the world choose to enter China in order to set up their manufacturing operations in the many business areas in China.

Most of the companies choose China are the recommended place for their product basmement due to lower labor costs for achieving economies of scale. Recently, the apparel industry of China has been growing at a very high rate and it is due to this that the national economy of the country has been promoted by this industry. The apparel and the textile output accounts for about 1/5th of the total output at the national level. Today China has become one of the most largest and quickest processing and producing garment base in the world today.

This strategy report assessess the strategic implications, strategic choices and the strategic implementations for a non-chinese firm to enter into the apparel indutry into China. The company is going to establish its presense in the Chinese market through the online and offline retail offering of its branded products and expansion in China by providing its customers with high quality products at a competitive price in the Chinese market.

Analysis of Competitive Landscape

            The apparel industry has been performing well in China if we talk about the current year 2014. The growth in the revenues of the companies is tremendous and there are many opportunities for other non-chinese companies to capitalize over this market. The trend of the people of China has also been changing over the years and people are now placing huge emphasis over the personal appearances and the disposable incomes of the people of China is growing at a very good level. Although the consumption confidence of the people of China has slightly reduced as compared to the previous year 2013, due to unfavourable macro economic conditions in the market.

China has become the rising fashion hub and the trend has been eveolving in China where personal appearnace, style and outlook of people is considered is one of the most important component and as a result of this many international companies such as Old Navy and Topshop had entered into the Chine apparel industry in the year 2014. On the other hand, those brands of the international market that have entered the industry are now making plans to expand into the Chinese makret by penetrating those areas that provide potential for higher revenues such as the lower tier cities in China.Doing Business in Emerging Markets Case Solution

 Companies are now also entering into the internet retailing area and further extending their product lines in the apparel industry. The distribution in the market was mainly dominated by the stores of the companies but the internet retailing has started to gain popularity in the market and is is becoming as one of the main significant sources of revenue for the companies in the Chinese market.

The European brands have dominated the high end domestic clothing market in the Chinese market and there are also many other imported products. The most famous and the most popular brands that have entered into the Chinese apparel market and these include Ermenegildo Zegna, Dior, Chanel, Dunhill, Huge Boss, Cerruti 1881, Giorgio Armani and Salvatore Ferragamo. The domestic and the foreign brand of China comprise of the lower and the middle income apparel markey in China. A very small portion of all such products is sourced from the countries that are considered as least developed and the developing countries of the world. If we look at some specific brand that are sourced from the least developing and the developing countries of the world then these brands are H&M, Zara, Tommy Hilfiger, Adidas and Nike...........................

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