Online Internationalisation

Stacey Ross (S1105444)International Fashion Brand Management

MHN520459

April 2015

Overview

Part 1 – Background & Overview

- Company Overview and SWOT Analysis

- Competitor Analysis

- Market Overview

Part 2 – International Fashion Brand Strategy

- Internationalisation

- Market Entry Strategies

- Potential Markets

- Fashion Brand Differentiation

Company Overview Mid-market, local high street retailer

Catering for the real, forty-something woman

2006 – re-branded from Mackays to M&Co; the very first M&Co website was born

Over 250 stores nationwide; expanding overseas through franchising

2012 – first franchise store opened in Dubai Mall

Delivering to 90 countries worldwide via website

(M&Co., 2015)

SWOT Analysis

STRENGTHS

- Clear internationalisation strategy for stores(franchising)

- Accessible – is in fact the largest retailer in most towns

- Scottish heritage

- Delivers to 90 countries worldwide through website

WEAKNESSES

- Lack of region/nation specific websites

- Lack of presence in shopping centres

- Offers only fashion and homeware

OPPORTUNITIES

- Product extension opportunities

- Online expansion to international markets

THREATS

- More established competitors such as M&S,

John Lewis

- Competitors with larger product offerings

- Economic climate

Competitor Analysis

(Retail-business-review.com, 2010).

Market Overview

Primark

New Look

George

Matalan

Peacocks H&M

Marks & Spencer

M&Co

DebenhamsRiver Island

Top Shop

Dorothy Perkins

Next

Fashion

Price

(M&Co – GCU Presentation, 2015)

Market positioning is the act of designing the company’s offering and image so that they occupy a meaningful and distinct competitive position in the target customers’ minds (Kotler and Keller, 2009).

Internationalisation

What is Internationalisation?

Standardisation of products (Levitt, 1983);

Free movement of labour and capital;

Global communication;

Economic, social, political and cultural ties (Chen, 2006);

Growth and development of human co-operation over national and international borders (Boudreaux, 2007)

Routes to Internationalisation

Least expensive/least

control

• Wholesale/Export

• Concessions

Fairly inexpensive, relatively controlled

• E-Commerce

• Franchising/Licensing

More expensive, long term

commitments

• Mergers and Acquisitions

• Joint Venture

Most expensive, offers maximum

control

• Organic Growth

• Flagships (Moore, Doherty & Doyle, 2010)

(De Chernatony, 2010; Keller, 2013).

Market Entry Strategies

In terms of entering a market through online channels, there are perhaps not as many methods as there are offline:

Brand website;

Blogger outreach and engagement;

Social media presence;

Phone/tablet apps

Potential Markets

BRAZIL: Population – Over 202 million

(tradingeconomics.com, 2014); Portuguese is the first language

(Encyclopaedia Britannica, 2015); 107,822,831internet users in 2014

(7% increase on previous year); E-commerce is booming; Growing middle class; 27 hours per month is spent online

FRANCE: Population – 64.6 million

(worldpopulationreview.com, 2014); One of the world’s fashion capitals; France generates most revenue through

M&Co website, after the UK (M&Co –GCU Presentation, 2015);

Almost 70% of French consumers have internet access;

Spent > 51.1billion Euros in 2013; One of the biggest ecommerce

countries in the world (Ecommerce News, 2014);

Close to home

Fashion Brand Differentiation

M&Co should successfully differentiate themselves from competitors as they offer more than just clothing, and have the opportunity to expand product ranges once they are settled in new markets.

M&Co also have the added advantage in that their products are not limited to the ‘real, 40 something’ woman, but can be adopted by females of a younger age.

Summary

M&Co should trial dedicated websites in the countries mentioned (Brazil, France);

Scope to then include blogger engagement as a way of advertising their brand;

Opportunity to create mobile phone/tablet app dependant on uptake of website in foreign markets;

Opportunity to have distribution warehouses abroad

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Braid, L. and Toner, N. (2015). M&Co - GCU Presentation.

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