Womens Fashion Vietnam

WOMEN'S FASHION IN VIETNAM

© 1974 - 2012

THE WOMEN’S FASHION MARKET REPORTS ARE AVAILABLE FOR:

Australia, Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New

Zealand, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, & Vietnam.

Branded Women's Fashion in Vietnam

2

This report has been prepared by:

17 September 2012



The Women's Fashion in Vietnam core database has 63 chapters, plus Excel spreadsheets & Access databases, and a large number of documents, tools and utilities.

CONTENTS

Indicates a dynamic link to the online data

Contents CONTENTS .......................................................................................................................................... 2

Introduction ......................................................................................................................................... 14

Pan Asia average for monthly Consumer Spending in 2008-2011 .............................................. 14

Monthly Consumer Spending forecast for 2013-2018 .................................................................. 15

Asia-Pacific Fashion ........................................................................................................................ 17

Korean Fashion ............................................................................................................................... 17

Objectives ........................................................................................................................................ 18

Criteria ............................................................................................................................................. 18

1. Report Criteria ..................................................................................................................... 18

Parameters ...................................................................................................................................... 20

2. Research overview .............................................................................................................. 20

Brand Surveys ................................................................................................................................. 22

Brand Coverage .............................................................................................................................. 23

Market Opportunity .......................................................................................................................... 30

Analysis of the development of the retail trade and its life cycle .................................................. 30

Added Value and Transaction Costs across the Supply Chain .................................................... 31

Clothing retailers per 10,000 inhabitants...................................................................................... 32

Clothing Store Revenue per Square Meter per annum (US$) ...................................................... 32


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Average Revenue per Clothing Store per annum (‘000 US$) ...................................................... 33

Average Clothing Store Sales Area (Square Meters) .................................................................. 33

Existing Distribution Channels ..................................................................................................... 34

New Distribution developments ................................................................................................... 34

Online Shopping by Middle Classes – Purchases per month ...................................................... 35

Distribution Policies & Strategies ................................................................................................. 36

Retail Trade Life Cycle and Development in Women’s Fashion .................................................. 39

City and Town analysis for Vietnam ..................................................................................... 40

Wholesaler, Trade Buyer, Retailer and Store Performance Surveys ........................................... 41

Products ....................................................................................................................................... 41

Retail Operations ......................................................................................................................... 41

Buyer Profiles .............................................................................................................................. 41

Trading Area ................................................................................................................................ 41

Competitors ................................................................................................................................. 42

Retailer & Wholesaler Surveys ............................................................................................. 42

Trade Decision Makers Surveys ........................................................................................... 43

Store Performance Surveys ................................................................................................. 43

Market Size ..................................................................................................................................... 44

Vietnam Branded Market Volume Sold in units by Product Sectors ............................................ 44

Vietnam Branded Market Value by Product Sectors............................................................. 45

City / Town Market Value ..................................................................................................... 45

Consumer Attitudes ..................................................................................................................... 46

Products ....................................................................................................................................... 46

Retail Operations ......................................................................................................................... 46

Buyer Profiles .............................................................................................................................. 46

Trading Area ................................................................................................................................ 46

Competitors ................................................................................................................................. 47

Consumer Surveys ............................................................................................................... 47

Store Performance Surveys ................................................................................................. 48

Competitive Factors ........................................................................................................................ 49

Representative Brands ................................................................................................................ 49

Brands Price Differentials ............................................................................................................ 53

Product Price Differentials ........................................................................................................... 54

Product Positioning ......................................................................................................................... 55

Casual Product ............................................................................................................................ 55

Smart Casual ............................................................................................................................... 55

Formal.......................................................................................................................................... 55


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Special Occasion ......................................................................................................................... 55

Price Discounting ......................................................................................................................... 56

Low Price ..................................................................................................................................... 56

Market Median Price .................................................................................................................... 56

High Price .................................................................................................................................... 56

Basic Quality ................................................................................................................................ 57

Median Quality ............................................................................................................................. 57

High Quality ................................................................................................................................. 57

Premium Quality .......................................................................................................................... 57

Low Product Specification ............................................................................................................ 58

Undifferentiated Product .............................................................................................................. 58

Differentiated ............................................................................................................................... 58

High Specification ........................................................................................................................ 58

No Target Audience ..................................................................................................................... 59

Some Targeting ........................................................................................................................... 59

Highly Targeted ........................................................................................................................... 59

Specific Audience ........................................................................................................................ 59

High Volume ................................................................................................................................ 60

Median Volumes .......................................................................................................................... 60

Low Volume ................................................................................................................................. 60

Restricted Volume........................................................................................................................ 60

Necessity Product ........................................................................................................................ 61

Common Product ......................................................................................................................... 61

Discretionary Product................................................................................................................... 61

Luxury Product ............................................................................................................................. 61

Frequent Cleaning ....................................................................................................................... 62

Average Cleaning ........................................................................................................................ 62

Infrequent Cleaning...................................................................................................................... 62

Specialist Cleaning ...................................................................................................................... 62

Simple Merchandising.................................................................................................................. 63

Display Merchandising ................................................................................................................. 63

Featured ...................................................................................................................................... 63

Complex Proposal ....................................................................................................................... 63

Basic Advertising ......................................................................................................................... 64

Feature Advertising ...................................................................................................................... 64

Target Advertising ........................................................................................................................ 64

Complex Advertising .................................................................................................................... 64

Brand Positioning Tactics & Strategy .............................................................................................. 65


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Current Tactical Brand Model ...................................................................................................... 65

Strategic Brand Objectives .......................................................................................................... 66

Functional Positioning - Symbolic Positioning - Experiential Positioning ..................................... 67

Customer Value Propositioning ................................................................................................... 68

Value Concept & Positioning ....................................................................................................... 69

Brand Differentiation Propositions ............................................................................................... 70

Key Selling Messages.................................................................................................................. 71

Communications Tactics .............................................................................................................. 72

Advertising Tactics ....................................................................................................................... 73

Media & PR Tactics ..................................................................................................................... 74

Web & Online Tactics .................................................................................................................. 75

Point of Sale Tactics .................................................................................................................... 76

Merchandising ............................................................................................................................. 77

Product Display ............................................................................................................................ 78

Korean Brands ................................................................................................................................ 79

Awareness of existing Korean Brands ......................................................................................... 79

Trade Buyer Perceptions of existing Korean Brands ....................................................................... 80

Customer Base Perceptions of existing Korean Brands .............................................................. 81

Perceived Strengths and Weaknesses of existing Korean Brands .............................................. 82

Market Entry Management Factors ................................................................................................. 83

Women’s Fashion Distribution ..................................................................................................... 83

Retail Level .................................................................................................................................. 83

Nature of Competition .................................................................................................................. 84

Brand Competition ....................................................................................................................... 84

Value............................................................................................................................................ 85

Location ....................................................................................................................................... 85

Supply Chain ............................................................................................................................... 85

Nature of Competition .................................................................................................................. 86

Supplier Price Differentials ........................................................................................................... 87

Retailer Reaction ......................................................................................................................... 88

Supplier Reaction ........................................................................................................................ 89

Conclusion ................................................................................................................................... 90

Distributors – Market Entry choices ............................................................................................. 92

Retail Presence – Market Entry choices ...................................................................................... 93

Distribution Channel: Advantages – Disadvantages .................................................................... 94

Market Entry options for Domestic Brands ...................................................................................... 95

Market Entry options for Established or Global Brands ................................................................... 96

Market Entry Features ................................................................................................................. 97


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Start-up Costs ................................................................................................................................. 98

Start-up Costs, Initial Investment and Product Launch Balance sheet ........................................ 98

Inventory Costs ............................................................................................................................ 98

Brand Store Start-up Costs .......................................................................................................... 99

Independent Store Start-up Costs ............................................................................................. 100

Brand In-Store Start-up Costs .................................................................................................... 101

Distributor / Exclusive Wholesaler Sign-up Costs ...................................................................... 102

Start Times Weeks: Brand Store ............................................................................................... 103

Start Times Weeks: Independent Store ..................................................................................... 104

Start Times Weeks: Distributor / Exclusive Wholesaler ............................................................. 105

Economies of Scale with multiple Stores ................................................................................... 106

Cash Flow, Profit & Loss, Balance Sheet, Project Financial Analysis ........................................... 107

12 Months Cash Flow Analysis .................................................................................................. 107

First 12 months and First 3 years Profit & loss Account............................................................. 108

1-7 Years Balance Sheet ........................................................................................................... 109

10 Years Project Financial Analysis ........................................................................................... 110

SWOT Analysis ............................................................................................................................. 111

SWOT analysis by type of Market Entry .................................................................................... 111

Entry via Own Retail Stores ....................................................................................................... 111

Entry via Domestic Retail Joint Venture ..................................................................................... 111

Entry via National Franchise Licensee ....................................................................................... 112

Entry via Intensive Individual Franchising .................................................................................. 112

Entry via Exclusive National Distributor ..................................................................................... 113

Entry via Intensive National Distribution / Wholesaling .............................................................. 113

Competitive Analysis ..................................................................................................................... 114

Indonesia Representative Brands .............................................................................................. 114

Singapore Representative Brands ............................................................................................. 115

Vietnam Representative Brands ................................................................................................ 116

Market Penetration Prospects ....................................................................................................... 117

Advancing into the target markets ............................................................................................. 117

Brand Concept ........................................................................................................................... 118

Brand Equity .............................................................................................................................. 118

Customer Based Brand Equity ................................................................................................... 119

Brand Knowledge ...................................................................................................................... 119

Substantial Brand Knowledge & Awareness – All Brands.......................................................... 119

Brand Equity Model.................................................................................................................... 120

Substantial Brand Loyalty – All Brands ...................................................................................... 121

Substantial Brand Quality –v Price Perceptions – All Brands .................................................... 122


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Brand Knowledge Components ................................................................................................. 123

Brand Resonance Components ................................................................................................. 123

Brand Resonance ...................................................................................................................... 124

Qualitative Brand Research ....................................................................................................... 126

Qualitative Brand Identifiers ....................................................................................................... 126

Marketing communication applied to fashion products .............................................................. 127

The Brand Image in the marketing communication process ...................................................... 128

The Store Image in marketing communication process ............................................................. 128

Consumer confidence and consumer markets in Asia-Pacific ................................................... 129

Consumer Confidence Index ..................................................................................................... 129

Consumer Attitudes and Perceptions which impact Clothing Brands ........................................ 131

% Usage & Purpose of clothes purchases ................................................................................. 132

Celebrity endorsement ............................................................................................................... 133

Relative Ranking Criteria and Consumer Habits for Clothing Purchase .................................... 134

Brand Selection ......................................................................................................................... 134

Price over Brand Loyalty amongst Young Buyers ...................................................................... 135

Purchase Drivers for Younger Buyers : < 19 and 19-24 Years Old ........................................ 135

Domestic Brands -v- Foreign Brands ......................................................................................... 136

Asia-Pacific Markets Conclusion ................................................................................................ 137

Fashion market potential in the Asia-Pacific region ................................................................... 137

What do consumers want in a branded product? ....................................................................... 138

What can Korean brands and designers do to counter the established brands? ....................... 139

How can Korean brands and designers do better than the established brands? ....................... 139

Novel marketing methods to distinguish oneself from the competition ...................................... 140

Unique Brand Offerings ............................................................................................................. 141

New and Untapped Market Demand .......................................................................................... 142

Niche Markets ............................................................................................................................ 142

Brand Superiority ....................................................................................................................... 143

Building Heritage Brands ........................................................................................................... 143

Brand Resonance ...................................................................................................................... 144

Brand Persistence ..................................................................................................................... 145

Brand Development Opportunities ............................................................................................. 147

Fashion Industry Checklist ......................................................................................................... 151

Fashion Design and Merchandising ........................................................................................... 151

Performance Indicators .............................................................................................................. 152

Application of Design – Performance Factors ............................................................................ 153

Industry Performance Indicators ................................................................................................ 153

Performance Indicators for brand selection, development, and distribution ............................... 154


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Performance Indicators for merchandising strategies ................................................................ 155

Market Strategy Insight.................................................................................................................. 156

Market Entry Possibilities and Criteria ....................................................................................... 156

Market Entry Difficulties ............................................................................................................. 156

Market Potential ......................................................................................................................... 157

Financial Potential ..................................................................................................................... 158

Consumer Potential & Attitudes ................................................................................................. 159

Relative Return on Investment by country 1-7 years & 7-14 years ............................................ 160

Relative Return on Investment by country 14+ years & Overall ................................................. 161

Relative Return on Investment by Product Category ................................................................. 162

Relative Return on Investment by country for Young Casual Wear ........................................... 162

Relative Return on Investment by country for Career Wear ....................................................... 163

Relative Return on Investment by country for Denim & Casual Wear ........................................ 164

Relative Return on Investment by country for Every day Wear .................................................. 165

Relative Return on Investment by country for Sports & Outdoor Wear ...................................... 166

Relative Return on Investment by country for Lingerie & Underwear ........................................ 167

Relative Return on Investment by country for Fashion Accessories .......................................... 168

Opinions of the fashion and retail experts on introducing new brands ....................................... 169

MARKET RESEARCH COVERAGE ................................................................................................. 170

Markets & Products covered ......................................................................................................... 170

Product Sectors ......................................................................................................................... 170

Survey Data ................................................................................................................................... 171

Consumer Surveys .................................................................................................................... 171

Retailer & Wholesaler Surveys .................................................................................................. 172

Trade Decision Makers Surveys ................................................................................................ 172

Store Performance Surveys ....................................................................................................... 173

Competitors ............................................................................................................................... 173

Retail Operations ....................................................................................................................... 174

Products ..................................................................................................................................... 174

Buyer Profiles ............................................................................................................................ 175

Trading Area .............................................................................................................................. 175

Geographic Coverage ................................................................................................................... 176

Financial data ................................................................................................................................ 176

Financial Data Scenarios ........................................................................................................... 176

Financial Margins & Ratios Data Scenarios ............................................................................... 176

Vietnam General Contents ............................................................................................................ 177

Vietnam Report Table of Contents ................................................................................................ 178

Vietnam Core Database Open the Core Database here ............................................................. 178


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Sections......................................................................................................................................... 178

Preface .............................................................................................................................. 178

Chapters ............................................................................................................................ 178

Databases ......................................................................................................................... 178

Financials .......................................................................................................................... 178

Industry .............................................................................................................................. 178

Markets .............................................................................................................................. 178

Products ............................................................................................................................ 178

Grids .................................................................................................................................. 178

Reference .......................................................................................................................... 178

Contents ............................................................................................................................ 178

Legend............................................................................................................................... 178

Cities ................................................................................................................................. 178

Countries ........................................................................................................................... 178

Chapters ........................................................................................................................................ 179

Chapter 1 .................................................................................................................................. 179

ADMINISTRATION ............................................................................................................ 179

Chapter 2 .................................................................................................................................. 179

ADVERTISING .................................................................................................................. 179

Chapter 3 .................................................................................................................................. 179

BUYERS – COMMERCIAL OPERATIONS ....................................................................... 179

Chapter 4 .................................................................................................................................. 179

BUYERS – COMPETITORS .............................................................................................. 179

Chapter 5 .................................................................................................................................. 179

BUYERS – MAJOR CITY .................................................................................................. 179

Chapter 6 .................................................................................................................................. 179

BUYERS – PRODUCTS .................................................................................................... 179

Chapter 7 .................................................................................................................................. 179

BUYERS – TRADE CELL .................................................................................................. 179

Chapter 8 .................................................................................................................................. 179

COMPETITIVE INDUSTRY ANALYSIS............................................................................. 179

Chapter 9 .................................................................................................................................. 179

COMPETITOR ANALYSIS ................................................................................................ 179

Chapter 10 ................................................................................................................................. 179

COUNTRY FOCUS ........................................................................................................... 179

Chapter 11 ................................................................................................................................. 179


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DISTRIBUTION ................................................................................................................. 179

Chapter 12 ................................................................................................................................. 179

FINANCIAL - BUSINESS DECISION SCENARIOS .......................................................... 179

Chapter 13 ................................................................................................................................. 179

FINANCIAL - CAPITAL COSTS FINANCIAL SCENARIOS ............................................... 179

Chapter 14 ................................................................................................................................. 179

FINANCIAL - CASHFLOW OPTION SCENARIOS ............................................................ 179

Chapter 15 ................................................................................................................................. 179

FINANCIAL - COST STRUCTURE SCENARIOS .............................................................. 179

Chapter 16 ................................................................................................................................. 179

FINANCIAL - HISTORIC INDUSTRY BALANCE SHEET .................................................. 179

Chapter 17 ................................................................................................................................. 179

FINANCIAL - HISTORIC MARKETING COSTS & MARGINS ........................................... 179

Chapter 18 ................................................................................................................................. 179

FINANCIAL - INVESTMENT + COST REDUCTION SCENARIOS ................................... 179

Chapter 19 ................................................................................................................................. 179

FINANCIAL - MARKET CLIMATE SCENARIOS ............................................................... 179

Chapter 20 ................................................................................................................................. 179

FINANCIAL – MARKETING COSTS ................................................................................. 179

Chapter 21 ................................................................................................................................. 179

FINANCIAL - MARKETING EXPENDITURE SCENARIOS ............................................... 179

Chapter 22 ................................................................................................................................. 179

FINANCIAL – MARKETING MARGINS ............................................................................. 179

Chapter 23 ................................................................................................................................. 179

FINANCIAL - STRATEGIC OPTIONS SCENARIOS ......................................................... 179

Chapter 24 ................................................................................................................................. 179

FINANCIAL - SURVIVAL SCENARIOS ............................................................................. 179

Chapter 25 ................................................................................................................................. 179

FINANCIAL - TACTICAL OPTIONS SCENARIOS ............................................................ 179

Chapter 26 ................................................................................................................................. 180

GEOGRAPHIC DATA ........................................................................................................ 180

Chapter 27 ................................................................................................................................. 180

INDUSTRY - NORMS ........................................................................................................ 180

Chapter 28 ................................................................................................................................. 180

MAJOR CITY MARKET ANALYSIS .................................................................................. 180

Chapter 29 ................................................................................................................................. 180

MARKET CAPITAL ACCESS SCENARIOS ...................................................................... 180


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Chapter 30 ................................................................................................................................. 180

MARKET CASHFLOW SCENARIOS ................................................................................ 180

Chapter 31 ................................................................................................................................. 180

MARKET ECONOMIC CLIMATE SCENARIOS ................................................................ 180

Chapter 32 ................................................................................................................................. 180

MARKET INVESTMENT + COSTS SCENARIOS ............................................................. 180

Chapter 33 ................................................................................................................................. 180

MARKET MARKETING EXPENDITURE SCENARIOS ..................................................... 180

Chapter 34 ................................................................................................................................. 180

MARKET RISK SCENARIOS ............................................................................................ 180

Chapter 35 ................................................................................................................................. 180

MARKET STRATEGIC OPTION SCENARIOS ................................................................. 180

Chapter 36 ................................................................................................................................. 180

MARKET SURVIVAL OPTION SCENARIOS .................................................................... 180

Chapter 37 ................................................................................................................................. 180

MARKET TACTICAL OPTION SCENARIOS ..................................................................... 180

Chapter 38 ................................................................................................................................. 180

MARKETING EXPENDITURE -v- MARKET SHARE ........................................................ 180

Chapter 39 ................................................................................................................................. 180

MARKETING STRATEGY DEVELOPMENT ..................................................................... 180

Chapter 40 ................................................................................................................................. 180

MARKETS ......................................................................................................................... 180

Chapter 41 ................................................................................................................................. 180

OPERATIONAL ANALYSIS............................................................................................... 180

Chapter 42 ................................................................................................................................. 180

OVERSEAS DEVELOPMENT ........................................................................................... 180

Chapter 43 ................................................................................................................................. 180

PERSONNEL MANAGEMENT .......................................................................................... 180

Chapter 44 ................................................................................................................................. 180

PHYSICAL DISTRIBUTION + CUSTOMER HANDLING ................................................... 180

Chapter 45 ................................................................................................................................. 180

PRICING............................................................................................................................ 180

Chapter 46 ................................................................................................................................. 180

PROCESS + ORDER HANDLING..................................................................................... 180

Chapter 47 ................................................................................................................................. 180

PRODUCT ANALYSIS ...................................................................................................... 180

Chapter 48 ................................................................................................................................. 180


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PRODUCT DEVELOPMENT ............................................................................................. 180

Chapter 49 ................................................................................................................................. 180

PRODUCT MARKETING FACTORS ................................................................................ 180

Chapter 50 ................................................................................................................................. 180

PRODUCT MIX ................................................................................................................. 180

Chapter 51 ................................................................................................................................. 180

PRODUCT SUMMARY...................................................................................................... 180

Chapter 52 ................................................................................................................................. 180

PROFIT RISK SCENARIOS .............................................................................................. 180

Chapter 53 ................................................................................................................................. 181

PROMOTIONAL MIX ......................................................................................................... 181

Chapter 54 ................................................................................................................................. 181

SALESFORCE DECISIONS .............................................................................................. 181

Chapter 55 ................................................................................................................................. 181

SALES PROMOTION ........................................................................................................ 181

Chapter 56 ................................................................................................................................. 181

SURVEYS ......................................................................................................................... 181

Chapter 57 ................................................................................................................................. 181

TARGETS - PRODUCT + MARKET ................................................................................. 181

Chapter 58 ................................................................................................................................. 181

TECHNOLOGY ................................................................................................................. 181

Chapter 59 ................................................................................................................................. 181

TRADE CELL ANALYSIS .................................................................................................. 181

Chapter 60 ................................................................................................................................. 181

URBAN COMPETITION .................................................................................................... 181

Chapter 61 ................................................................................................................................. 181

TOWNS - FINANCIAL ....................................................................................................... 181

Chapter 62 ................................................................................................................................. 181

TOWNS - INDUSTRY ........................................................................................................ 181

Chapter 63 ................................................................................................................................. 181

TOWNS - MARKET ........................................................................................................... 181

BUSINESS PLANNING..................................................................................................................... 182

Checklist ........................................................................................................................................ 182

Checklist implementation ........................................................................................................... 185

Advancing your Project .............................................................................................................. 186

Cashflow Projections ..................................................................................................................... 187

The Business Plan Programme ..................................................................................................... 188


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Installing the Business Plan Programme ................................................................................... 189

Methodology .................................................................................................................................. 196

Presentation .................................................................................................................................. 196

After-Sales Service & Client Support ............................................................................................. 196

Real Time Support ..................................................................................................................... 197

Resource Webs -v- Dedicated sites ........................................................................................... 197

Product Level ............................................................................................................................. 198

Data Product levels .................................................................................................................... 199

Getting Started with the Core Database .................................................................................... 199

Using the data ............................................................................................................................ 200

Toolkit ........................................................................................................................................ 200

Proprietary Software packages .................................................................................................. 201


14

Introduction The growth of the middle classes in Asia-Pacific countries and the globalization of women’s garment retailing have led to the rapid expansion of global brands in Asia-Pacific markets. These brands may be conveniently divided into the following main groupings: • Luxury • High Street • Asia-Pacific Brands • Department Stores Brands & Generic Brands Whereas in Europe and North America these brands are purchased by all Social and Income Groups, in Asia the purchases often tend to be more skewed towards the higher end of the spectrum simply for the reason that local median income levels tend to be less than those of buyers in Europe and North America. Thus whereas many of the High Street brands would in Europe and North America be regarded as inexpensive and therefore accessible to the D and E social groups, in many Asia-Pacific countries these same brands would be more patronized by the C1 and C2 social groups. Furthermore, there is a sociological context to the development of the global brands in Asia which make them more acceptable to those potential buyers more exposed to globalized culture through their education or through the media they observe. The growth and market penetration of the globalized brands in Asia will certainly be more promising and sustainable in Asia than for the same brands in North America and Europe. With a rapidly growing middle class in most Asia-Pacific countries there is a significant augmentation in household incomes. As household income grows the percentage of disposable income which was in the past used on food is diminishing and this provides the basis for much more discretionary spending. Inevitable the use of some of that disposable income will be channelled into fashion products.

Pan Asia average for monthly Consumer Spending in 2008-2011


15

Monthly Consumer Spending forecast for 2013-2018

Fo

od

& D

rin

k

Clo

thin

g

Du

rab

les

Ho

me

Fu

rnis

hin

gs

Hea

lth

& B

ea

uty

Me

dic

al

Fo

otw

ea

r

Le

isu

re G

oo

ds

Lu

xu

ry G

oo

ds

Oth

er

sp

en

din

g &

Inv

es

tmen

ts

% % % % % % % % % %

Australia 36 6 5 3 2 5 2 3 4 34

Bangladesh 72 7 4 3 3 4 1 2 2 2

Cambodia 68 5 3 3 2 5 1 2 2 9

China 55 6 3 3 2 6 1 2 3 19

Hong Kong 44 5 4 3 2 4 2 2 4 30

India 68 7 3 3 4 5 1 2 3 4

Indonesia 62 7 3 4 3 4 1 1 3 12

Japan 36 6 5 3 2 5 2 3 4 34

Malaysia 57 7 3 4 3 6 1 2 3 14

New Zealand 36 5 4 3 1 4 2 3 4 38

The Philippines 61 6 4 4 2 5 1 2 2 13

Singapore 40 5 4 3 2 4 1 2 3 36

South Korea 37 6 5 3 1 4 2 3 4 35

Sri Lanka 70 6 3 4 4 6 1 2 2 2

Taiwan 42 6 4 2 1 5 2 2 3 33

Thailand 55 7 3 3 3 6 1 2 3 17

Vietnam 68 7 4 4 2 6 1 2 3 3

Disposable Income and Discretionary Spending (together with the consumers’ own assessment of future trends) is measured during Consumer Surveys when consumers were asked specific psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.

In most Asia-Pacific markets the Value Proposition of many Luxury and High Street brands have survived intact; conversely in North America and Europe the Value Proposition of many Luxury and High Street brands have been devalued for a number of reasons. Fashion Garments, as with Jewellery and Cosmetics products, have seen their perceived worth diminished during the last decade or so in North America and Europe. This is due to both the popularization of the brands which make them less exclusive, and because they are perceived to be less costly to manufacture and less durable. Some formerly high end brands have suffered for these reasons; for example, the Ralph Lauren Polo brand is not perceived to be as up-market as before because it is now worn by C2, D and E social groups and because their labels show that the garments are manufactured in Jamaica, Malaysia, and more recently in even cheaper labour-rate countries. Similarly in the United Kingdom the Burberry brand has suffered because it was adopted as a dress code or uniform by badly behaved youth gangs of the D and E social groups; and thereby the Burberry brand became associated with a particularly unfortunate customer base, thereby devaluing the brand.


16

There are psychological reasons which currently make Asia-Pacific markets more durable than, for example, the United Sates or the United Kingdom markets and that is the general neurotic

1 (and

sometimes psychotic) psychology of female fashion and luxury goods consumers in some countries. The increasingly neurotic nature of some of these customer bases is tending to divert expenditure away from fashion into other neurotic activities. In, for example the United Sates and the United Kingdom, neurotic behaviour patterns have increasingly led women to succumb to eating disorders (which has led to obesity) and impulsive disorders like drinking alcohol to excess. This has caused a rapid rise in over-weight women (over 50% of the adult female population in the United Sates and the United Kingdom are over-weight) and clinical obesity (over 35% of the adult female population in the United Sates and over 25% of the adult female population in the United Kingdom are clinical obese). This means that these women find it increasingly difficult to interact and interface with fashion products and as a consequence they do not perceive themselves to be capable of engaging with much of the fashion industry. Neuroses play an important part in the purchasing behaviours of consumers, especially with fashion and luxury goods, and these neuroses represent both opportunities and threats to fashion product manufacturers and retailers. The good news for fashion product manufacturers and retailers is that a neurotic customer base makes it relatively easier for retailers to loosen the purses of buyers; the bad news is that a neurotic customer base has a short attention span and is prone to be irrationally diverted to other neurotic activity.

1 The terms neurosis and psychosis are used in their clinical context. The symptoms as described as follows:-

There are many forms of neurosis: obsessive-compulsive disorder, anxiety neurosis, hysteria, and a very wide variety of

phobias as well as obsessions. Effects of neurosis can involve anxiety, sadness or depression, anger, irritability, mental

confusion, low sense of self-worth, et cetera; behavioural symptoms such as phobic avoidance, vigilance, impulsive and

compulsive acts, lethargy, et cetera; cognitive problems such as unpleasant or disturbing thoughts, repetition of thoughts and

obsession, habitual fantasizing, negativity and cynicism, etc. Interpersonally, neurosis involves dependency, perfectionism,

feelings of isolation, socio-culturally behaviours, et cetera.

Individuals who score high on neuroticism are more likely than the average to experience such feelings as anxiety, anger, envy,

guilt, and depressed mood. They respond more poorly to environmental stress, and are more likely to interpret ordinary

situations as threatening, and minor frustrations as hopelessly difficult. They are often self-conscious and shy, and they may

have trouble controlling urges and delaying gratification. Neuroticism is a risk factor for the "internalizing" mental disorders such

as phobia, depression, panic disorder, and other anxiety disorders (traditionally called neuroses). Research has found that a

wide range of clinical mental disorders are associated with elevated levels of neuroticism compared to levels in the general

population. Disorders associated with elevated neuroticism include mood disorders, such as depression and bipolar disorder,

anxiety disorders, eating disorders, schizoaffective disorder, dissociative identity disorder, and hypochondriasis. Mood

disorders tend to have a much larger association with neuroticism than these other disorders. The remaining personality

disorders had either modest positive or non-significant (in the case of narcissistic and histrionic) associations with neuroticism.

Research has consistently found that on average, women score moderately higher than men on neuroticism. A study

examining gender differences in big five personality traits in 55 nations found that across nations the most pronounced gender

difference in personality was in neuroticism. In 49 of the 55 nations studied, women scored significantly higher in neuroticism

than men. In no country did men report significantly higher neuroticism than women, although in Botswana and Indonesia, men

were slightly higher than women. Gender differences in neuroticism within nations ranged from very small to quite large. The

differences were moderate to large in 17 countries, and small to moderate in 29 countries. In only seven countries -

Bangladesh, Tanzania, Ethiopia, Greece, Japan, Botswana, and Indonesia - were they negligible. African and Asian/South

Asian world regions tended to have smaller sex differences in personality overall than did western world regions (Europe, and

North and South America). Differences in the magnitude of sex differences between world regions were due to differences

between men in these respective regions. That is, men in western world regions were lower on neuroticism compared to men in

African and Asian/South Asian world regions. Women, on the other hand tended not to differ in neuroticism across regions.

Gender differences were also positively associated with measures of human development, that is, a long and healthy life,

access to knowledge and education, and decent standards of living. Sex differences became more pronounced in countries

with higher levels of human development. It is speculated that resource poor environments (that is, countries with low levels of

development) may inhibit the development of gender differences, whereas resource rich environments facilitate them. This may

be because males require more resources than females in order to reach their full developmental potential. Evolutionary

theories suggest that gender differences in neuroticism developed because men have evolved to be more risk taking whereas

women have evolved to be more cautious and hence more anxious and avoidant when faced with danger.


17

Asia-Pacific Fashion The market for Branded Women’s Fashion wear is becoming increasingly sophisticated in the Asia-Pacific markets. When Jimmy Lai started the Giordano brand in Hong Kong in 1981 the business model was relatively unsophisticated, and relied on a facsimile American product offering coupled to an Italian sounding brand name. Giordano ran into problems and since 2001 their business model has proved somewhat fragile. The question remains: can an Asia-Pacific company produce facsimile American or European product designs with an American or European sounding brand name and succeed? The probability is that this business model will not succeed in the long term. Indeed Peter Lau, the current CEO of Giordano is now actively seeking a more robust business model. The reasons for the less than dynamic growth for brands like Giordano is not because the product design or the product quality is less than that of any of the American or European brands, it is just that Asia-Pacific buyers, especially women, are fully exposed to American and European brands and they value the brand image or legacy of those global brands. In Indonesia, Singapore and in other Asia-Pacific countries there is a new generation of fashion entrepreneurs with great ambition and encouraging designs. Can this new generation of fashion designer introduce products which are marketable across Asia? With thousands of new brands being produced in Asia it is increasingly difficult for brands and designers to achieve long term success.

Korean Fashion

Korean Brands, like those of Woo Jong Wan’s Basic House, have also emulated American or European design trends and coupled these with Brand names like Basic House, Mind Bridge, Voll, The Class, D’Urban, and so forth.

The Singapore department store, Robinsons, carries the Basic House products; however these brands have not greatly succeeded against the European or American brands sold in Singapore.

This study is designed to answer one question; how can Korean Women’s Fashion brands and designers profitably market their products to an increasingly sophisticated customer base?

What tactics and strategies should the Korean companies use to counter the existing brands; and which market or product niches will open up new opportunities for the Korean companies?


18

Objectives

To research the Women’s Fashion Market in Vietnam and thereby develop entry strategies for the

penetration of that market

Criteria

1. Report Criteria

This report has been conducted using primary and secondary research:-

Primary Personal Interviews were conducted with Fashion Experts at Fashion Magazines or other Media, Fashion Brand Managers, Fashion Trade Buyers, Fashion Retailers, In-store Retail Negotiators, Retail Mall Operators, Fashion Wholesalers, Property & Real Estate agents, Shop-fitting companies, Shipping and Logistics companies. The discussions with these persons covered the following issues based on the interviewees’ personal or corporate experiences:-

Company History

Planned Products & Services during Start-up

Current Market Analysis

Current Strategy & Implementation

Current Management

Current Financial Plan

Start-Up Investment Fund Sources & Use of Funds

Shop Legal Entity & Ownership

Company History to Date

Company Facilities

Company Key Assets

Actual Products Carried & Services Offered

Description

Target Customer

Features & Benefits

Competition

Competitive Advantage / Barriers to Entry Encountered after Start-up

Development Plans

Future Market Analysis

Future Target Customer

Projected Market Size


19

Future Fashion Trends

SWOT ANALYSIS

Strengths

• Experience and understanding of the fashion industry

• Shopping experience and customer service

• Location

• Consumer base

Weaknesses

• Untested markets

• Niche markets

Opportunities

• Outstanding shopping experience will lead to repeat business

• Online presence

• Establish a clothing line

Threats

• Cost and effectiveness of marketing to women

• New retail shops

FUTURE STRATEGY PLANNING & IMPLEMENTATION

Philosophy

Product Development

Internet Strategy

Marketing Strategy

Sales Strategy

Strategic Alliances

Operations

GOALS

Renovating, stocking, staff hiring and marketing

Hosting events

Penetrate and raise awareness in the targeted consumer market

Achieving a higher profit margin

Build a solid customer base and contact list

Generate repeat and referral sales

Become a highly profitable business with expansion potential

Establish a solid reputation as quality retail establishment

EXIT STRATEGY


20

MANAGEMENT

Organizational Structure

Leadership

Staff Members

FINANCIAL PLAN

Finance Requirements

Use of Funds

Income Statement & Projections

Cash Flow Projections

Balance Sheet Topics

Financial Assumptions

Primary Surveys of Consumers and Retail Customers were undertaken to analyse Brand awareness and attitudes in Vietnam. These Surveys included not only Women’s Fashion products, but also other Luxury and High Street Brands in order to fully evaluate the impact of Branding on Disposable Income and Discretionary Purchases in Vietnam. See details below.

DataGroup Fashion Market databases.

Market and Financial Data from 1997 to 2011, forecast to 2012-2018 and 2018-2025.

Market and Financial Data in US$ prices and Local Currency by year.

Parameters

2. Research overview

Research Subjects

• Female clothing target market: Up to 19 years, 20-24 years, 25-34 years, 35-44 years, 45-54 years, 55-64 years, 64+ years.

• Female Garment Categories covered

1. Fur & Fun Fur Garments

2. Dresses

3. Outerwear Coats, Jackets & Rainwear

4. Suits, Trouser Suits, Jackets, Blazers & Business Wear

5. Slacks, Trousers, Jeans, Shorts & Skirts

6. Tops, T-Shirts, Knit & Woven Tops, Blouses, Sweaters

7. Sportswear & Swimwear

8. Hosiery, Pantyhose, Socks & Tights


21

9. Underwear, Bras & Girdles

10. Lingerie, Sleepwear & Loungewear

11. Hats, Scarves, Wigs & Hairpieces

12. Accessories, Handbags, Wallets, Neckwear, Gloves & Belts

13. Tailored Garments

14. Casual, Sweat tops, Pants, & Warm-ups

15. Functional Garments, Uniforms, Smocks & Workwear

16. Footwear

17. Dress & Casual Footwear

18. Athletic Footwear & Trainers

• Female Fashion Categories covered:

1. Young Casual Wear

2. Career Wear

3. Denim & Casual Wear

4. Every day Wear

5. Sports & Outdoor Wear

6. Lingerie & Underwear

7. Fashion Accessories

8. Footwear

Towns and Cities covered in Vietnam

The overall Market Data covers each of the major towns and cities in Vietnam. Click on this link to see the towns and cities covered.

http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/World_Cities/VM.html


22

Brand Surveys

This evaluation consists of Consumer Surveys undertaken in the shopping areas and malls of Hanoi + Ho Chi Minh City. The data collected was for the target Women’s Fashion Brands, plus other Luxury and High Street Brands to be found in Vietnam.

Individual Brand Surveys are available (from the After-Sales Service) for each of the Brands named below:-

• Women’s Fashion Brands covered in Vietnam are:

Luxury Brands

Burberry

Chanel

Dior

Dolce & Gabbana

Gucci

Hermes

Louis Vuitton

Marc Jacobs

Prada

Valentino

Yves Saint Laurent

High Street Brands

Banana Republic

Calvin Klein Jeans

DKNY

GAP

GUESS

Karen Millen

Lacoste

Mango

Zara

Asian Brands

Blue Exchange

BYSI

Esprit

G2000

Hagatini

M)Phosis

PT 2000

Department Store & Generic Brands

Parkson / Saigon Paragon

Tax

Vincom


23

Brand Coverage

• In addition other Luxury and High Street Brands were evaluated for their impact of Branding

on Disposable Income and Discretionary Purchases in Vietnam. These brands included non-fashion

products so that an overall appraisal of Brand Impact on Discretionary Purchases could be more

completely assessed in Vietnam.

Individual Brand Surveys are available for each of these Brands from the After-Sales Service.

Ho Chi Minh City: Store targets

(CA) = Caravelle Hotel (CO) = Continental Hotel (NW) = New World Hotel (R) = Rex Hotel (S) = Sheraton Hotel, (DK) = Dong Khoi St (HBT) = Hai Ba Trung St (LL) = Le Loi street (P) = Pasteur St (NT) = Nguyen Trai St (MTB) = Mac Thi Boui St (CM) = Crescent Mall (KA) = Kumho Asiana Plaza (SC) = Saigon Center (VS) = Vincom Shopping Centre (ZP) = Zen Plaza (D) = Diamond Department Store (GR) = Galerie Royale (M) = Milano (TSN) = Tan Son Nhat International Airport (PLTT) = Parkson Department Store Le Thanh Ton (PLDH) = Parkson Department Store Parkson Le Dai Hanh (PP) = Parkson Department Store Paragon (PLTT) = Parkson Department Store Hung Vuong Plaza (PF) = Parkson Department Store Flemington (PSTP) = Parkson Department Store Saigon Tourist Plaza

Ho Chi Minh City Luxury Brands

Aspial (VS)

Balenciaga (R)

Bally (D, R, TSN)

Blugirl (M)

Blumarine (M)

Burberry (D, R, TSN)

BVLGARI Perfumes & Cosmetics (D)

Cartier (D, CA, R)

Chanel (D, R)

Charmes (VS)

Chloe (R, VS)

Chopard (D)

Christian Louboutin

Coach (TSN)


24

DKNY (CM)

Dolce and Gabbana (M)

Dsquared2 (M)

Dunhill (D)

Emporio Armani (VS)

Ermenegildo Zegna (R)

Furla (D, DK, VS)

Givenchy (D, R)

Gucci (D, S)

Jaeger LeCoultre (CA)

Janeke (M)

Jimmy Choo (VS)

John Galliano (M)

Just Cavalli (VS)

Kenzo (GR)

LeSportsac (TSN)

Loewe (R)

Longchamp (D)

Longines (CO)

Louis Vuitton (DK)

Marc Jacobs (R)

Mont Blanc (D, TSN)

Moreschi

Omega (D, DK)

Philippe Charriol (D)

Piaget (CO)

Rado (MTB)

Ralph Lauren (R)

Rene Caovilla (M)

Roberto Cavalli (M)

Rolex (D, R)

Rolex & Chopard (D)

Salvatore Ferragamo (D, R, PLTT, TSN)

Seiko (DK)

Sergio Rossi (P)

Swavoski (TSN, VS)

Swiss Watch (D)

Tag Heuer (DK, TSN)

Tara Jarmon (R)

Testoni (D)

Tod's (M)

Tumi (R)

Valentino (PLTT)

Valentino Rudy (D)

Versace (PLTT, VS)

Vertu (S)

Yves saint Laurent (M)

Zeades (PLTT)


25

Ho Chi Minh City High Street Brands

Accessorize (NT, VS)

Aldo (DK, KA, VS)

Axara Paris (CM, NT, SC, VS)

Bana Bana (D)

Bata (VS)

BCBGMAXAZRIA (CM, VS)

Bebe (SC, VS)

Biotherm (D)

Bonia (PF, PHV, PLTT, PSTP, VS)

Birkenstock

Bossini (LL)

Braun Buffel (D)

bYSI (VS)

Calvin Klein (D)

Carlo Rino (PLDH, NT, VS)

Charles & Keith (NT, VS)

Charles David (CM)

Chic Accessories (VS)

CK Jeans (D)

Clarks (D)

Converse (10 locations)

Crocs Shoes (PLDH, PLTT)

Crocodile (D)

Diesel (ZP)(CM)

Diva Fine Jewellery (8)

Dr. Martens (11 locations)

Ecco (VS)

Ecko Unlimited (VS)

Elizabeth Arden (PLTT, PHV)

Elle (D, VS, PLDH)

EVita (PLTT)

Espirit (CM, DK, PHV, PLDH)

Etam (PLDH)

Four Seasons Boutique (VS)

French Connection (CM, D, LL, NT, VS)

Florsheim (4 locations)

GAP (CM)

Geox (D, PP, SC)

Giordano (5 locations)

Guess (D)

Guerlain Cosmetics

Guy Laroche (D)

Hello Kitty (NT)

Hikosen Cara (11 locations)

Hoffmann (VS, NT)

Kanebo (PLTT)

Kangnai (VS)

Kappa (D, VS)


26

Kipling (PLDH)

Kookai (MTB, SC)

L'OCCITANE (9 locations)

Lacoste (DK, NW, PHV, PLTT)

Lancel (PLDH)

Laneige (PLTT)

La Perla (GR)

La Senza (NT, VS)

la Vie en Rose (VS)

Lee (3 locations)

Levis (D, DK, NT, SC, VS)

M.A.C (PSTP)

MaBelle (NW)

Makeup For Ever (PSTP, VC)

Mango (NT, MTB, SC, VS)

Menard (D, NW, PCT, PHV, PSTP, PF)

Misaki (PLTT)

Miss Sixty & Energie (D)

Monsoon Accessorize (2 locations)

Montagut (NT)

Muse Boutique (SC)

Naf Naf (VS)

Nike (LL)

Nike Fashion (ZP)

Nike Town (CM)

Nine West (HBT, NT, SC, VS)

Noir (PLDH)

Paris Hilton (NT, VS)

Pedro (VS)

Pierre Cardin (PLTT, VS)

Playboy (VS)

Replay (NT, VS)

Samsonite (2)

Shiseido (NW, PLTT)

Skechers (VS)

Sisley

The Body Shop (NT)

THE FACE SHOP (17 locations)

Thomas Sabo (VS)

Tommy Hilfiger (ZP)(CM)

Van Laack (DK)

Voir (PLDH)

Yves Rocher (NT, VS)

Ho Chi Minh City Department Store

Debenhams

Isetan from Japan (Start-up)


27

Hanoi: Store targets

(H) = Hilton Hotel (M) = Melia Hotel (S) = Sofitel Hotel (LTT) = Le Thai To Street (LTK) = Ly Thuong Kiet (GP) = Grand Plaza (HD) = Hang Da Galleria (HG) = Ho Guom Plaza (LM) = Luxury Mall (MA) = Metropole Arcade (PM) = Pico Mall (VC) = Vincom City Towers (OBC) = Opera Business Center (PP) = Pacific Place (CT) = C.T Hapro Mini Department Store (GR) = Gallery Royalem (RB) = Runway Boutique (PCT) = Parkson Department Store CT Plaza (PV) = Parkson Department Store Viet Tower

Hanoi Luxury Brands

Antonio Berardi (RB)

Bally (MA)

Bang & Olufsen (PP)

Burberry (MA, OBC)

Cartier (GP, MA)

Chole (RB)

Chopard (MA)

Clinique

D&G (LM)

Dunhill (H)

Escada (LTT)

Estee Lauder (OBC)

Furla (H)

GF Ferre (LM)

Gianfranco Ferre (LM)

Gianni Versace

Giovanni (GP)

Giuseppe Zanotti (LM)

Gucci (LTT)

Jaeger-LeCoultre (MA)

Just Cavalli (GP, LM)

Hermes (MA)

Hussein Chalayan (RB)

IWC Schaffhausen (MA)

Kenzo (GR, OBC)

Kiton (LM)

Korloff (GR)

La Perla (GR)

Little Marc (RB)


28

LongChamp (LTT)

Longines (LTT, PP)

Louis Vuitton (MA)

Marc by Marc Jacobs (RB)

Michael Kors (RB)

Mont Blanc (GP, MA)

Moreschi (LM)

Roberto Botticelli (LM)

Roberto Cavalli (LM)

Roberto Scarpa (LM)

Sergio Rossi (MA)

Salvatore Ferragamo (MA)

Valentino Rudy (LM, VC)

Valentino (GP, LTT, PP)

Versace (LM)

Vertu (M, S)

Viktor & Rolf (RB)

Hanoi High Street Brands

Addidas (VC)

Aldo (HG, VC)

Axara Paris (HD, LTT, PM)

BCBGMAXAZRIA (LTT)

Birken Stock (HD)

Bonia (PCT, VC)

Bossini (VC)

Braun Buffel (VC)

C'N'C (LM)

Calvin Klein (CT, PCT)

Clarins (VC)

Clinque (LTT)

Converse (3 locations)

Croc Shoes (PCT, PM)

Debon (VC)

Delsey (PM)

Dr. Martin (2 locations)

Ecco (PM)

Elizabeth Arden (PCT)

Elle (VC)

Espirit (PCT, VC)

Exte (LM)

Florsheim (PCT)

French Connection (HD, PM)

G2000 (HD, PM)

Geox (GP, PCT, PM, PV, VC)

Giordano (2 locations)

Guerlain Cosmetics

Kenebo (VC)


29

Laneige (VC)

L'OCCITANE (PV, VC)

La Perla (OBC)

Lacoste (PCT, PP, VC)

Lego (VC)

Levis (7 locations)

Mango (LTK, PCT, VC)

Marie France Bodyline

Menard (5 locations)

Monsoon Accessorize

Morgan De Toi (PM)

Minoshe (PM)

Misaki (VC)

Nike (VC)

Naf Naf (HD, PM)

Nine West (LTT, PP, VC)

Noir (HD)

Pierre Cardin (VC)

Samsonite (PM)

Shiseido (VC)

THE FACE SHOP (3 locations)

Tissot (PM)

Triumph (PM, VC)

Umberto Bilancioni (LM)

United Color of Benetton (VC)

Wacoal (PM)

Van Laack (LTT)

Yves Rocher


30

Market Opportunity

Analysis of the development of the retail trade and its life cycle

The choice of route to the market has opportunities and pitfalls, product and brand superiority is an

obvious competitive advantage which can be re-enforced through firm control of the retail channels.

However products and brands superiority is a medium and long-term strategy which can be unstable

and may be subject to short-term set-backs. Clearly strong brands with real product benefits have the

best competitive advantage, and for this reason the long-lived brands have consistently invested in

brand equity.

The low transaction cost routes to the market have clear benefits, but may suffer from sustainability

problems as the concept adopted is easy and inexpensive to replicate by competitors. The majority of

foreign brands operating in any one country tend to choose the Medium Added Value and Medium

Transaction Costs routes to the market as these are tested and known. However the use of novel and

innovative channels of distribution are being increasingly explored by the brand leaders. Newcomers

are less inhibited (than the entrenched brands) in trying and testing new distribution channels and

often new brands can achieve improved market penetration through imaginative distribution policies

and tactics.

The task of any brand seeking to enter these markets is to achieve an alignment with the distribution

and a synergy with consumer buying behaviours and expectations.

Analyse consumer buying behaviours

Evaluate consumer ‘Shopping Experience’ criteria

Identify consumer channel preferences

Correlate consumer channel usage with purchasing criteria

Provide flexible and adaptable retail channel options

Observer changes in consumer buying behaviours

Adapt and respond to consumer buying behaviours

The above considerations are of course an analogy of the life cycle of particular channels. Failure to

respond and adapt in the above manner will inevitably result in the premature shortening of the life

cycle of any particular channel.

The purchasing criteria of consumers will be recognisable, and have been specified in other sections

of this study. The basic criteria are inevitably the same in most of the countries:-

Price

Availability

Brand

Quality

Shopping experience

Store Personnel

Store appeal

Promotional actions

Et cetera

How these criteria then interact with particular channels is the important issue; as is how these criteria

and the individual channel can be correlated and manipulated to maximise Added Value and minimise

Transaction Costs.


31

Added Value and Transaction Costs across the Supply Chain

O

wn

ed

Ex

clu

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e

Bra

nd

Sto

res

Na

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l B

ran

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Lic

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g

Re

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Se

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ia

Ex

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Dis

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Mu

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Bra

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Dir

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Ind

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Re

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Co

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um

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Pa

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Pla

n

Soci

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s

Te

lem

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eti

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me

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AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC

Australia H H M H M M M M M M M M L L L L L L L L

Bangladesh H M M M M M M M M M M M L L L L L L L L

Cambodia H H M M M M M M M M M M L L L L L L L L

China H H M M M M M M M M M M L L L L L L L L

Hong Kong H H M H M M M M M M M M L L L L L L L L

India H M M M M M M M M M M M L L L L L L L L

Indonesia H H M M M M M M M M M M L L L L L L L L

Japan H H M H M M M M M M M M L M L L L L L L

Malaysia H H M M M M M M M M M M L L L L L L L L

New Zealand H H M M M M M M M M M M L L L L L L L L

Philippines H M M M M M M M M M M M L L L L L L L L

Singapore H H M M M M M M M M M M L L L L L L L L

South Korea H H M H M M M M M M M M L L L L L L L L

Sri Lanka H M M M M M M M M M M M L L L L L L L L

Taiwan H H M M M M M M M M M M L L L L L L L L

Thailand H H M M M M M M M M M M L L L L L L L L

Vietnam H M M M M M M M M M M M L L L L L L L L

AV = Added Value : TC = Transaction Costs : H = High : M = Medium : L = Low


32

Clothing retailers per 10,000 inhabitants

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Australia 9 10 9 10 9 10 10 11 11 10 9

Bangladesh 4 4 4 4 5 5 5 6 5 5 5

Cambodia 4 4 5 5 5 6 6 6 7 8 9

China 8 8 8 7 8 8 9 9 9 9 10

Hong Kong 7 8 8 9 9 8 9 10 10 9 8

India 5 5 6 5 6 7 7 7 8 9 10

Indonesia 6 7 7 6 6 7 7 7 7 7 7

Japan 9 9 9 9 9 9 10 10 9 10 10

Malaysia 6 7 6 7 7 8 9 9 8 9 9

New Zealand 9 10 9 9 8 9 9 9 10 10 9

The Philippines 6 7 6 7 8 7 8 8 9 9 10

Singapore 5 5 5 5 5 5 5 6 6 6 5

South Korea 8 8 9 10 10 10 10 10 10 10 11

Sri Lanka 4 4 4 4 4 5 5 6 6 6 6

Taiwan 6 7 7 7 7 7 7 7 8 8 9

Thailand 5 5 5 6 6 7 8 8 8 9 9

Vietnam 4 4 5 5 5 5 5 6 7 7 8

Clothing Store Revenue per Square Meter per annum (US$)

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Australia 3500 3898 4341 4834 4845 5395 6009 6022 6707 7469 7486

Bangladesh 1500 1497 1659 1656 1836 2035 2031 2252 2496 2491 2762

Cambodia 1450 1453 1618 1802 1806 2012 2240 2245 2501 2506 2791

China 2400 2417 2705 3027 3049 3070 3092 3114 3137 3159 3535

Hong Kong 19800 20900 22061 20958 19910 18915 17969 18967 20021 19020 18069

India 1800 1865 2148 2474 2564 2657 2753 2853 3286 3784 3921

Indonesia 1700 1950 2237 2309 2649 2734 2823 3238 3343 3834 4398

Japan 11100 10533 11105 10538 11111 10543 10005 10548 11122 10553 10014

Malaysia 2200 2280 2625 2721 2820 2922 3029 3139 3614 3746 3882

New Zealand 4500 4455 4410 4366 4323 4279 4237 4660 5126 5075 5024

Philippines 1100 1196 1301 1415 1709 2066 2496 2714 3280 3963 4789

Singapore 8100 7953 7808 8518 9292 9123 9953 10858 11845 12921 12686

South Korea 3300 3785 3908 4034 4165 4777 5480 6286 6489 7443 7684

Sri Lanka 1600 1767 1951 1939 2140 2127 2349 2593 2577 2846 2828

Taiwan 3200 3223 3246 3269 3292 3316 3711 4152 4182 4212 4242

Thailand 8300 8093 7890 8548 8334 9029 9781 9536 9298 10073 10912

Vietnam 2100 2176 2256 2597 2692 3100 3212 3329 3450 3576 4117


33

Average Revenue per Clothing Store per annum (‘000 US$)

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Australia 340 341 342 342 343 382 383 426 475 476 477

Bangladesh 131 131 145 145 160 160 177 177 196 196 195

Cambodia 134 134 150 150 150 167 168 187 208 232 232

China 236 238 266 268 300 302 338 340 343 383 386

Hong Kong 1908 2014 1913 1818 1727 1823 1924 2031 2144 2036 2150

India 159 165 171 177 204 211 219 252 261 301 346

Indonesia 170 195 201 208 238 246 254 291 301 311 321

Japan 1188 1253 1321 1253 1189 1128 1190 1254 1323 1394 1470

Malaysia 205 212 245 282 292 303 314 361 416 431 447

New Zealand 394 433 429 425 421 463 509 504 499 494 543

Philippines 110 133 161 194 211 255 308 335 405 489 591

Singapore 722 788 859 844 828 813 887 968 950 933 916

South Korea 302 312 358 410 423 437 501 575 660 757 868

Sri Lanka 146 161 178 177 195 194 193 213 235 234 258

Taiwan 305 341 344 385 430 434 437 489 492 496 555

Thailand 763 744 806 873 946 922 999 974 950 1029 1115

Vietnam 185 192 221 229 237 273 283 326 375 389 448

Average Clothing Store Sales Area (Square Meters)

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Australia 97 84 77 67 69 72 60 70 73 61 61

Bangladesh 89 89 82 88 89 75 90 77 77 76 69

Cambodia 93 92 88 79 84 79 74 85 87 97 83

China 97 103 98 88 97 94 114 105 105 115 110

Hong Kong 100 98 91 85 89 98 107 108 107 112 118

India 90 90 79 69 75 83 80 83 81 75 83

Indonesia 101 99 90 94 94 88 85 87 87 84 71

Japan 104 116 115 115 109 109 123 121 121 128 140

Malaysia 91 91 91 104 101 101 106 116 120 118 110

New Zealand 87 97 97 100 93 107 116 108 102 94 109

Philippines 100 105 117 130 120 119 122 125 119 120 118

Singapore 90 99 108 103 90 86 92 88 82 73 71

South Korea 91 82 96 103 100 94 93 94 102 106 116

Sri Lanka 93 95 93 88 90 86 78 82 87 82 91

Taiwan 98 104 111 112 124 135 112 117 121 118 129

Thailand 87 94 104 97 111 102 104 99 105 99 101

Vietnam 83 90 97 90 83 88 88 93 105 104 108


34

Existing Distribution Channels

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Reta

ile

r -

Do

me

sti

c

ow

ned

& c

on

tro

lle

d

Reta

ile

r -

Fo

reig

n

co

ntr

oll

ed

Reta

ile

rs -

Jo

int

Ve

ntu

res

Reta

il –

In

tern

et

&

Oth

ers

% % % % % % % %

Australia 82 7 8 3 83 7 5 5

Bangladesh 86 6 6 2 82 6 4 8

Cambodia 87 5 4 4 80 8 5 7

China 87 7 2 4 84 7 4 5

Hong Kong 81 12 4 3 77 11 7 5

India 91 6 2 1 84 7 5 4

Indonesia 84 8 4 4 79 6 7 8

Japan 85 8 2 5 81 8 3 8

Malaysia 83 6 5 6 80 5 6 9

New Zealand

85 6 8 1 78 8 7 7

Philippines 82 6 6 6 81 6 8 5

Singapore 82 7 6 5 81 8 8 3

South Korea

87 5 1 7 83 6 2 9

Sri Lanka 87 7 1 5 86 5 6 3

Taiwan 85 5 6 4 80 5 9 6

Thailand 82 5 7 6 82 7 8 3

Vietnam 91 5 1 3 86 6 4 4

New Distribution developments

Multiple-Channel Development

Developing a Multi-Channel approach to the consumer is often very effective and allows:-

Efficient access to each market segment

Increased market coverage

Lower channel cost

Opportunities for targeted and customised selling

More precise control of channels


35

The introduction of Complementary Channels, each of which targets different product or consumer segments.

Competitive Channels where more than one channels competes for the same consumer segment. This permits dynamic pricing tactics, promotional opportunities and better inventory management mechanisms.

Multi-Marketing & Social Networking

Developing a Multi-Marketing & Social Networking approach to the consumer can help access niche markets:-

Direct selling an Party Plan to access specific demographics (Married women, Older women, women in rural locations)

Telemarketing which can access Housewives and women at their work place.

Social Network integration with mobile applications to promote specific events and ‘shopping experiences’ for the younger demographics.

e-Commerce & M-Commerce

The effective application of e-Commerce and then Mobile Applications will increasing become very

important in the marketing mix of all brands.

Online Shopping by Middle Classes – Purchases per month

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Australia 8 9 11 12 13 14 15 16 17 18 19

Bangladesh 3 4 5 7 8 9 10 11 12 13 14

Cambodia 2 3 4 5 7 8 8 9 10 12 12

China 8 9 10 11 12 13 14 15 15 16 17

Hong Kong 6 7 8 9 10 12 13 14 15 16 16

India 4 5 6 7 8 9 10 11 12 13 14

Indonesia 3 4 6 6 7 8 9 10 11 12 13

Japan 5 6 7 8 9 10 11 12 13 14 16

Malaysia 3 4 5 6 7 8 9 10 11 12 13

New Zealand 9 10 11 13 13 14 15 16 17 18 19

Philippines 5 6 7 8 9 11 11 12 13 14 15

Singapore 5 6 7 8 9 10 12 12 13 15 15

South Korea 8 9 10 11 12 13 14 15 17 18 19

Sri Lanka 3 4 5 6 7 8 9 10 11 11 13

Taiwan 6 7 8 9 10 11 12 13 14 15 16

Thailand 3 4 5 6 7 8 9 10 10 11 12

Vietnam 3 4 5 6 7 8 9 10 11 12 13 The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.


36

Distribution Policies & Strategies

Distribution Strategies for consideration

Ex

clu

siv

e D

istr

ibu

tor

No

n-E

xc

lus

ive D

istr

ibu

tor

Se

lec

ted

Wh

ole

sa

le D

istr

ibu

tio

n

Inte

ns

ive

Dis

trib

uti

on

to

pro

vid

e

co

nv

en

ien

ce

to

in

dep

en

den

t re

taile

rs

Dir

ec

t s

up

ply

to

Se

lec

ted

Re

taile

rs

Inte

ns

ive

Dis

trib

uti

on

to

in

dep

en

de

nt

reta

ile

rs

Mu

lti-

ch

an

ne

l D

istr

ibu

tio

n

Australia

X

Bangladesh

X

Cambodia

X

China

X

Hong Kong X

India

X

Indonesia

X

Japan

X

Malaysia

X

New Zealand

X

Philippines

X

Singapore X

South Korea

X

Sri Lanka X

Taiwan

X

Thailand

X

Vietnam X

The above distribution strategies are used by the

current players in each of the country markets. Each

distribution method needs to be analysed in depth to

understand the implications.

Exclusive Distribution advantages include:

Maximised control over service level

Control of costs

Enhanced brand equity

Enhanced margins

Control of tied retailers

Improved independent retailer loyalty

Improved ERP and inventory control

Improved merchandising controls

Improved forecasting and market reaction time

Market power and influence Exclusive Distribution disadvantages:

Risk in reliance on an exclusive distribution system

Mainly geared to big brand, high price, high margin and low volume products

Intensive Distribution advantages include:-

Potentially increased retailer sales

Wider consumer recognition

Enhanced product exposure Intensive Distribution disadvantages:-

Applicable to low price, low-margin high street brands

Products require constant refreshing and high stock turn

Difficulty controlling brand image

Selective Distribution advantages:

Better market coverage than exclusive distribution

More control and less cost than intensive distribution

Concentration on productive outlets

Carry full product line

Provide superior services Selective Distribution disadvantages:

May not cover the market adequately

Potential errors in distributor

selection


37

Adaption of Distribution

Strategies

Channel Control Strategies

Bett

er

kn

ow

led

ge

of

Co

nsu

me

r b

uy

ing

ha

bit

s

Bett

er

att

en

tio

n t

o C

us

tom

er

ex

pec

tati

on

s

Mo

re a

tte

nti

on

to

Co

mp

eti

tor’

s p

rod

uc

t

off

eri

ng

s

Bett

er

se

lec

tio

n o

f re

tail o

utl

ets

& l

oca

tio

ns

Imp

rov

em

en

t o

f ‘S

tore

Ex

pe

rie

nce

’

Mo

re a

tte

nti

on

to

Bra

nd

Eq

uit

y

Inc

rea

se

vo

lum

e le

ve

l o

f s

ale

s

Mo

re a

tte

nti

on

to

th

e M

ark

eti

ng

Mix

Ve

rtic

al

Ma

rke

tin

g S

yste

m (

VM

S)

ER

P m

eth

od

olo

gy

Fir

m c

en

tra

l co

ord

ina

tio

n

Pro

fes

sio

na

l M

an

ag

em

en

t

Pro

gra

mm

ed

ne

two

rk s

ys

tem

s

Use

of

inn

ov

ati

ve

ma

rke

tin

g c

han

ne

ls

Defi

nit

ion

s o

f c

orp

ora

te,

ad

min

istr

ati

ve

an

d

co

ntr

actu

al V

MS

Ho

rizo

nta

l M

ark

eti

ng

Sy

ste

m

Sy

mb

ioti

c m

ark

eti

ng

Australia

X X X X X X X X X X

Bangladesh X X X X X X X X X X X X X X X X X

Cambodia X X X X X X X X X X X X X X X X X

China X X X X X X X X X X X X X X X X X

Hong Kong

X X X X X X X X X

India X X X X X X X X X X X X X X X X X

Indonesia X X X X X X X X X X X X X X X X X

Japan

X X X X X X

Malaysia X X X X X X X X X X X X X X X X X

New Zealand

X X X X X X X X X X X X X X X

Philippines X X X X X X X X X X X X X X X X X

Singapore

X X X X X X X

South Korea

X X X X X X X X X

Sri Lanka X X X X X X X X X X X X X X X X X

Taiwan X X X X X X X X X X X X X X

Thailand X X X X X X X X X X X X X X X X X

Vietnam X X X X X X X X X X X X X X X X X

The countries marked with an X indicate the need for the distribution strategies to be analysed in

depth to understand the implications.


38

Purchasing power

Nati

on

al

Wh

ole

sa

lers

Reg

ion

al

Wh

ole

sa

lers

Ind

ep

en

de

nt

Wh

ole

sa

lers

Ag

en

ts &

Jo

bb

ers

Nati

on

al

Reta

ile

rs

Reg

ion

al

Reta

ile

rs

Ind

ep

en

de

nt

Re

tail

ers

Ma

il O

rde

r

Cata

log

ue

On

lin

e

Australia S M L M S M L S M M

Bangladesh M L N L M M N L L L

Cambodia M L N L M M N L L L

China S M L M S M L M M M

Hong Kong S M L M S M L M M M

India S M L M S M L M M M

Indonesia S M L M S M L M M M

Japan S M L M S M L S M M

Malaysia S M L M S M L M M M

New Zealand S M L M S M L M M M

Philippines S M L M S M L M M M

Singapore S M L M S M L M M M

South Korea S M L M S M L M M M

Sri Lanka M L N M M M N L L L

Taiwan S M L M S M L M M M

Thailand S M L M S M N M M M

Vietnam M L N L M M N L L L

S = Substantial : M = Moderate : L = Limited : N = None

Purchasing power is defined by the relative discounts and terms of payment achieved that each level

of the supply chain can achieve when negotiating with their suppliers. In general the distribution and

retail buyers can usually negotiate more advantageous terms with suppliers from Asia than with

suppliers from North America or Europe.


39

Retail Trade Life Cycle and Development in Women’s Fashion

Brand Development in the Retail Trade

The Retail Trade Life Cycle and Brand Development in Women’s Fashion have been very consistent

since the 1980s. Obviously in certain more developed countries like Australia, Japan, South Korea the

stage of the Life Cycle is fully mature and has reached saturation.

China will during the next decade experience structural problems with the age demographic and this

will affect Women’s fashion products.

It is not anticipated that the newly developing Asia Pacific countries will catch up with the developed

countries before 2025. Indeed with the effects of an aging population throughout the region there is

some doubt about the impact the age demographic will have on the life cycle in many Asia Pacific

countries.


40

Future Prospects and Development of the Retail Trade

The future of the Retail Trade in the Asia Pacific region will emulate the development of the trade in

North America and Europe; expect that the development will be greatly accelerated. Essentially the

Asia Pacific trade will clone the concepts and systems used in North America and Europe and simply

adapt those to local conditions. Thus whereas in North America and Europe Women’s Fashion brands

took some three decades to evolve, in Asia Pacific region this will be done much rapidly and will

depend solely on the ability of the local populations to have the disposable income to afford such

consumer brands.

In the larger countries, like China, India and Indonesia, it is probable that traditional retailing will never

fully evolve; as is has done in North America and Europe. This is due to the rapid changes in age

demographics within these countries and the effects of new distribution processes like online retailing.

For women’s fashion brands to develop along tradition lines, in the high street and shopping malls, it

will be necessary for retailers to develop and enhance the ‘shopping experience’ to draw consumers

to their brands.

City and Town analysis for Vietnam

The Research focuses on the Girl’s and Women’s Fashion Retailers in the Major Cities and General

Clothing Retailers in other cities. A full list of the cities in the database can be found here:

http://www.datagroup.org/BASE_FOLDERS/World_Cities/VM.html

The overall Market Data covers each of the major towns and cities in Vietnam can be found here:

http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/xls_MarketResearch

/CTM.xls

Detailed Market Data covers each of the major towns and cities in Vietnam can be found here:

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_TOWN_MARKE

T.htm


41

Wholesaler, Trade Buyer, Retailer and Store Performance Surveys

Products

1. Cardigans & Jumpers 2. Dresses 3. Jackets & Coats 4. Jeans & Denim 5. Knitwear 6. Lingerie 7. Maternity Wear 8. Nightwear 9. Shirts & Blouses - Tops & T-Shirts 10. Suits 11. Skirts 12. Sportswear & Swimwear 13. Stockings, Tights & Socks 14. Trousers, Leggings, Culottes, Shorts, Dungarees 15. Accessories

Retail Operations

1. Brand Management 2. Product Management 3. Marketing & Selling Activity 4. Store Presentation & Merchandising 5. Product Offering Specifications & Characteristics 6. Product Quality Control 7. Design Research & Development 8. Customer Handling 9. Product Sourcing & Control 10. Financial Controls 11. Staff Training / Control & Relations 12. Product Throughput Capacity & Control 13. Supply System Control & Development 14. Distribution Control 15. Product Handling Systems & IT

Buyer Profiles

1. Wholesalers 2. Trade Buyers 3. Retailers 4. Consumers 5. Immediate Distributors 6. Immediate Trade 7. Immediate End Users 8. Immediate Other Users 9. End User Age: <25 10. End User Age: 25-55 11. End User Age: 25-55 12. End User Social Group: AB 13. End User Social Group: C1 14. End User Social Group: C2 15. End User Social Group: DE

Trading Area

1. Ho Chi Minh City 2. Hanoi 3. Haiphong


42

4. Da Nang 5. Nha Trang 6. Qui Nhon 7. Hue 8. Can Tho 9. Nam Dinh 10. Vinh 11. My Tho 12. Cam Ranh 13. Vung Tau

Competitors

1. Luxury Brands 2. European High Street Brands 3. American High Street Brands 4. Asian Brands 5. Vietnamese Labels 6. Calvin Klein Jeans 7. Mango 8. GAP 9. Zara 10. Esprit 11. DKNY 12. G2000 13. M)phosis 14. GUESS 15. Karen Millen

These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of

the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.

Retailer & Wholesaler Surveys

Products:

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Database/FASHION_VM_SU5P.xls

Retail Operations:

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Database/FASHION_VM_SU5O.xls

Trade Decision Makers Surveys:

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Database/FASHION_VM_SU5A.xls

Trading Area

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Database/FASHION_VM_SU5T.xls

Competitors

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Database/FASHION_VM_SU5C.xls







43

Trade Decision Makers Surveys

Products:


Retail Operations:




Trading Area


Competitors


Store Performance Surveys

Products:


Retail Operations:




Trading Area


Competitors


The surveys are best viewed as a graphic representation and users should use the normal facilities in

Excel to render the Excel spreadsheets as a graphic.

To understand the format and structure of these Surveys please consult the following schematic and

Survey Definitions











http://www.datagroup.org/PureData/Base_PureData/Ch_Chapters/Ch_SURVEY_DEFI.htm


44

Market Size

Vietnam Branded Market Volume Sold in units by Product Sectors

Indonesia 2007 2008 2009 2010 2011

Young Casual Wear 53,484,859 57,611,532 48,269,766 48,471,307 51,337,352

Career Wear 9,526,845 8,934,055 8,744,010 8,206,428 7,954,027

Denim & Casual Wear 50,991,834 48,407,030 46,543,447 42,734,940 38,894,493

Every day Wear 107,289,477 102,634,671 110,099,876 96,379,220 96,398,309

Sports & Outdoor Wear 11,956,902 12,692,097 10,614,662 9,906,191 11,179,431

Lingerie & Underwear 54,755,269 48,491,466 46,540,555 47,504,416 42,248,751

Fashion Accessories 97,616,635 86,501,478 79,078,088 65,151,083 70,653,314

Singapore 2007 2008 2009 2010 2011


Career Wear 265,100 275,231 212,277 227,439 203,761

Denim & Casual Wear 1,069,791 1,006,153 1,013,070 993,686 944,845

Every day Wear 3,031,121 3,132,912 2,291,444 2,341,384 2,169,188

Sports & Outdoor Wear 267,720 303,695 263,253 256,353 245,992



Vietnam 2007 2008 2009 2010 2011


Career Wear 2,549,570 2,220,044 2,272,262 1,992,507 2,059,919

Denim & Casual Wear 10,782,464 9,252,172 9,464,232 8,152,172 7,413,800

Every day Wear 24,042,658 25,230,759 21,543,970 21,594,873 24,071,680

Sports & Outdoor Wear 2,795,290 2,688,551 2,716,908 2,531,636 2,457,093




45

Vietnam Branded Market Value by Product Sectors

Women’s Fashion Market at Producer Prices in US$ 1997 to 2011, 2012-2018 and 2018-2025

http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/VM_M0M.xls

Women’s Fashion Lines at Producer Prices in US$ 1997 to 2011, 2012-2018 and 2018-2025

http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/VM_M0Mx44812WF_

L.xls

Women’s Garment Lines at Producer Prices in US$ 1997 to 2011, 2012-2018 and 2018-2025

http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/VM_M0Mx44812WG_

L.xls

City / Town Market Value

The overall Market Data covers each of the major towns and cities in Vietnam can be found here:

http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/xls_MarketResearch

/CTM.xls

Detailed Market Data covers each of the major towns and cities in Vietnam can be found here:

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_TOWN_MARKE

T.htm

http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/VM_M0M.xls

http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/VM_M0Mx44812WF_L.xls

http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/VM_M0Mx44812WF_L.xls

http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/VM_M0Mx44812WG_L.xls

http://www.kcftc.org/Womens_Fashion/BASE_FOLDERS/xls_MarketResearch/VM_M0Mx44812WG_L.xls

http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/xls_MarketResearch/CTM.xls

http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/xls_MarketResearch/CTM.xls

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_TOWN_MARKET.htm



46

Consumer Attitudes

Products

1. Cardigans & Jumpers 2. Dresses 3. Jackets & Coats 4. Jeans & Denim 5. Knitwear 6. Lingerie 7. Maternity Wear 8. Nightwear 9. Shirts & Blouses - Tops & T-Shirts 10. Suits 11. Skirts 12. Sportswear & Swimwear 13. Stockings, Tights & Socks 14. Trousers, Leggings, Culottes, Shorts, Dungarees 15. Accessories

Retail Operations

1. Brand Management 2. Product Management 3. Marketing & Selling Activity 4. Store Presentation & Merchandising 5. Product Offering Specifications & Characteristics 6. Product Quality Control 7. Design Research & Development 8. Customer Handling 9. Product Sourcing & Control 10. Financial Controls 11. Staff Training / Control & Relations 12. Product Throughput Capacity & Control 13. Supply System Control & Development 14. Distribution Control 15. Product Handling Systems & IT

Buyer Profiles

1. Wholesalers 2. Trade Buyers 3. Retailers 4. Consumers 5. Immediate Distributors 6. Immediate Trade 7. Immediate End Users 8. Immediate Other Users 9. End User Age: <25 10. End User Age: 25-55 11. End User Age: 25-55 12. End User Social Group: AB 13. End User Social Group: C1 14. End User Social Group: C2 15. End User Social Group: DE

Trading Area

1. Ho Chi Minh City 2. Hanoi 3. Haiphong


47

4. Da Nang 5. Nha Trang 6. Qui Nhon 7. Hue 8. Can Tho 9. Nam Dinh 10. Vinh 11. My Tho 12. Cam Ranh 13. Vung Tau

Competitors

1. Luxury Brands 2. European High Street Brands 3. American High Street Brands 4. Asian Brands 5. Vietnamese Labels 6. Calvin Klein Jeans 7. Mango 8. GAP 9. Zara 10. Esprit 11. DKNY 12. G2000 13. M)phosis 14. GUESS 15. Karen Millen

These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of

the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.

Consumer Surveys

Products:


Retail Operations:




Trading Area


Competitors








48


Products:


Retail Operations:




Trading Area


Competitors


The surveys are best viewed as a graphic representation and users should use the normal facilities in

Excel to render the Excel spreadsheets as a graphic.

To understand the format and structure of these Surveys please consult the following schematic and

Survey Definitions






http://www.datagroup.org/PureData/Base_PureData/Ch_Chapters/Ch_SURVEY_DEFI.htm


49

Competitive Factors

Representative Brands

The Survey results in this report cover the following Representative Brand in Vietnam:-

Indonesia Brand T

yp

e

Bra

nd

Re

se

arc

h

Data

Ava

ilab

le

Co

mp

eti

tiv

e

Sta

nc

e

Sto

res

Rev

en

ue

s

Se

llin

g S

pac

e

Sq

M

% M

ark

et

Sh

are

2

The Executive IDB Yes High 58 13641600 4541 22

Mango GHS Yes High 23 6182400 2875 10

Gaudi IDB Yes High 27 6066900 1992 9

GUESS GHS Yes High 27 6026400 3024 9

Esprit AB Yes High 23 5168100 2028 8

Zara GHS Yes High 7 1881600 903 3

Muji AB Yes Low 6 1512000 464 2

G2000 AB Yes High 7 1499400 630 2

Top Shop GHS Yes High 6 1425600 756 2

GG<5 AB Yes low 5 1228500 369 1

GAP GHS Yes Moderate Available in core database M)Phosis AB Yes Moderate

Pull & Bear GHS Yes Moderate

Bershka GHS Yes Moderate

BYSI AB Yes Moderate

Forever 21 GHS Yes High

DKNY GHS Yes Moderate

New Look GHS Yes Moderate

Banana Republic GHS Yes Moderate

Dorothy Perkins GHS Yes Moderate

Lacoste GHS Yes Moderate

Calvin Klein Jeans GHS Yes Moderate

Marks & Spencer GHS Yes Moderate

Miss Selfridge GHS Yes Moderate

Karen Millen GHS Yes Low

Stardivarius GHS Yes Low

H&M GHS End 2012 Low

Louis Vuitton GLux Yes High

Gucci GLux Yes High

Chanel GLux Yes High

Burberry GLux Yes High

Prada GLux Yes High

Yves Saint Laurent GLux Yes High

2 Market Share of Women’s Fashion brands shown here.


50

Marc Jacobs GLux Yes Moderate

Miu Miu GLux Yes Moderate

Dior GLux Yes Moderate

Dolce&Gabbana GLux Yes Moderate

Hugo Boss GLux Yes Moderate

Valentino GLux Yes Moderate

Hermes GLux Yes Moderate

Kate Spade GLux Yes Low

MaxMara GLux Yes Low

Diane von Furstenberg GLux Yes Low

Matahari G/DS Yes High

Centro G/DS Yes Moderate

Galeri Keris G/DS Yes Moderate

Rimo G/DS Yes Low

Ramayana G/DS Yes Low

Carrefour G/DS Yes Low

IDB = Indonesian Brand : AB = Asian Brand : GHS = Global High Street : GLux = Global Luxury

G/DS = Generic brands / Department Store

Singapore Brand T

yp

e

Bra

nd

Re

se

arc

h

Data

Ava

ilab

le

Co

mp

eti

tiv

e

Sta

nc

e

Sto

res

Rev

en

ue

s

Se

llin

g S

pac

e

Sq

M

% M

ark

et

Sh

are

3

G2000 AB Yes High 26 29832000 2751 17

ESPRIT AB Yes High 23 16146000 2409 9

Mango GHS Yes Moderate 14 11312000 1909 6

M)phosis SGB Yes High 14 7812000 1176 4

Zara GHS Yes Moderate 7 6552000 970 3

Dorothy Perkins GHS Yes High 8 6400000 1126 3

BYSI SGB Yes High 10 5820000 940 3

GG<5 SGB Yes High 8 5568000 712 3

DKNY GHS Yes Moderate 7 5152000 924 3

Topshop GHS Yes High 6 4944000 666 2

Fox SGB Yes High Available in core database

Uniqlo AB Yes High

Warehouse GHS Yes High

GAP GHS Yes Moderate

Muji AB Yes High

Forever 21 GHS Yes High

Pull & Bear GHS Yes Moderate

New Look GHS Yes Low

Guess GHS Yes Moderate



51

Maxstudio GHS Yes High

Banana Republic GHS Yes Low

BCBGMAXAZRIA GHS Yes High

Karen Millen GHS Yes High

CK Jeans GHS Yes Moderate

Miss Selfridge GHS Yes High

WOMB SGB Yes High

Wallis GHS Yes High

River Island GHS Yes Moderate

Bershka GHS Yes Low

Abercrombie & Fitch GHS Yes Moderate

H & M GHS Yes Moderate

Gucci GLux Yes High

PRADA GLux Yes High

Armani GLux Yes High

Dolce & Gabbana GLux Yes High

Dior GLux Yes High

Hermes GLux Yes High



Miu Miu GLux Yes High

YSL GLux Yes Moderate

Ralph Lauren GLux Yes Moderate

Fendi GLux Yes Moderate

Etro GLux Yes Moderate

Bottega Veneta GLux Yes Moderate

Celine GLux Yes Moderate

Balenciaga GLux Yes Moderate

Loewe GLux Yes Moderate

Valentino GLux Yes Moderate

Ferragamo GLux Yes Moderate

Givenchy GLux Yes Moderate

Burberry GLux Yes Low

Diane von Furstenberg GLux Yes Low

Marc Jacobs GLux Yes Low

Kate Spade GLux Yes Low

Max Mara GLux Yes Low

Isetan G/DS Yes High

Tangs G/DS Yes High

Takashimaya G/DS Yes High

Robinsons G/DS Yes High

OG G/DS Yes Moderate

BHG G/DS Yes Moderate

SGB = Singapore Brand : AB = Asian Brand : GHS = Global High Street : GLux = Global Luxury



52

Vietnam Brand

Vie

tna

m

Bra

nd

Re

se

arc

h

Data

Ava

ilab

le

Co

mp

eti

tiv

e S

tan

ce

Sto

res

Rev

en

ue

s

Se

llin

g S

pac

e S

qM

% M

ark

et

Sh

are

4

Blue Exchange VMB Yes Moderate 174 38976000 12841 61

PT 2000 VMB Yes Moderate 25 5350000 2227 8

Hagatini VMB Yes Moderate 23 4462000 1966 7

Mango GHS Yes High 8 2380000 985 3

Calvin Klein Jeans GHS Yes Moderate 8 2120000 888 3

G2000 AB Yes Moderate 9 1764000 745 2

Esprit AB Yes High 7 1260000 604 1

M)Phosis AB Yes Moderate 3 558000 278 0

DKNY GHS Yes Moderate 2 540000 250 0

GAP GHS Yes High 2 505000 253 0

Zara GHS Yes High Available in core database

BYSI AB Yes Moderate

GUESS GHS Yes High

Lacoste GHS Yes Moderate

Karen Millen GHS Yes Moderate

Banana Republic GHS End 2012 Low


Gucci GLux Yes High


Burberry GLux Yes High

Prada GLux Yes High

Yves Saint Laurent GLux Yes High

Marc Jacobs GLux Yes Moderate

Dior GLux Yes Moderate

Dolce&Gabbana GLux Yes Moderate

Valentino GLux Yes Low

Parkson / Saigon Paragon G/DS Yes High

Tax G/DS Yes Moderate

Vincom G/DS Yes Moderate

VMB = Singapore Brand : AB = Asian Brand : GHS = Global High Street : GLux = Global Luxury




53

Brands Price Differentials

5 Representative Brands. (Other brands available in the core database) A

us

tra

lia

Ban

gla

de

sh

Cam

bo

dia

Ch

ina

Ho

ng

Ko

ng

Ind

ia

Ind

on

es

ia

Ja

pa

n

Ma

lay

sia

New

Ze

ala

nd

Ph

ilip

pin

es

Sin

ga

po

re

So

uth

Ko

rea

Sri

La

nk

a

Ta

iwan

Th

aila

nd

Vie

tna

m

Indonesia The Executive 2 14 19 12 8 10 11 1 7 2 8 8 7 15 10 15 23

Mango 4 24 28 13 11 18 18 4 11 4 14 11 11 19 16 18 28

Gaudi 2 12 18 12 7 12 9 2 8 3 7 7 6 16 8 13 17

GUESS 4 31 42 24 17 25 22 4 14 7 20 18 16 29 22 32 44

Esprit 3 17 29 11 7 12 13 2 8 4 9 9 7 19 11 16 25

Zara 5 18 30 14 8 18 16 3 12 4 11 10 13 22 16 18 28

Muji 3 21 23 14 8 16 16 2 10 4 9 13 8 21 12 20 28

Singapore

G2000 3 15 26 9 7 10 9 2 9 2 7 9 7 13 9 13 20

ESPRIT 3 21 25 12 9 11 13 2 11 3 11 9 8 14 9 19 27

Mango 3 25 38 18 11 14 19 2 12 4 12 12 11 23 12 22 34

M)phosis 4 16 31 14 8 16 11 3 11 3 12 10 10 16 13 17 27

Zara 3 23 30 16 11 17 19 3 15 5 11 15 11 18 15 20 32

Dorothy Perkins 4 25 27 18 8 18 18 3 13 4 12 11 10 24 14 21 39

BYSI 3 16 27 12 7 12 13 3 13 3 11 11 8 15 11 18 30

Vietnam

Blue Exchange 2 14 20 9 8 11 11 2 9 2 9 9 8 17 8 17 18

PT 2000 2 11 24 11 7 8 13 1 7 3 10 7 8 15 10 12 18

Hagatini 2 17 24 9 6 11 13 1 8 3 8 7 6 14 10 15 24

Mango 4 24 39 19 11 16 13 3 11 3 13 15 10 23 13 18 35

Calvin Klein Jeans 3 20 30 18 10 19 14 4 15 5 12 12 10 19 16 18 33

G2000 3 13 24 12 7 10 10 2 8 3 8 9 6 17 9 12 21

Esprit 4 20 27 11 10 12 13 2 11 4 11 11 8 18 11 15 25

How to interpret this data

Price differentials do not entirely depend on the actual monetary price of a product, but more on the Purchasing

Power Parity. This means that the actual monetary cost of the product in any particular country has to be

weighted with the average wage levels in that country to thereby produce the average purchasing power parity.

The data shows that in order to purchase a particular product a consumer in low wage rate country will have to

expend a greater proportion of his purchasing power than a consumer in a high wage rate country. Another way

to interpret the data is to consider that there is a demographic shift whereby in lower wage rate countries the

purchasing demographic of any particular product move further up the social scale when compared with high

wage rate countries. In addition in lower wage rate countries the products will take longer to achieve the same

level of market penetration as is found in high wage rate countries. As an extension of this one can see the

relative price differential of the brands when sold in other countries.


54

Product Price Differentials

Au

str

ali

a

Ban

gla

de

sh

Cam

bo

dia

Ch

ina

Ho

ng

Ko

ng

Ind

ia

Ind

on

es

ia

Ja

pa

n

Ma

lay

sia

New

Ze

ala

nd

Ph

ilip

pin

es

Sin

ga

po

re

So

uth

Ko

rea

Sri

La

nk

a

Ta

iwan

Th

aila

nd

Vie

tna

m

Cardigans Jumpers 15 104 149 54 51 79 70 14 53 15 59 54 41 73 45 103 120

Dresses 13 64 118 60 39 58 48 11 40 17 50 50 39 74 49 73 84

Jackets Coats 24 142 188 113 53 92 114 18 81 31 74 63 58 113 74 129 205

Jeans Denim 12 91 125 62 45 59 49 11 43 19 39 50 46 78 57 76 99

Knitwear 15 65 114 57 47 49 62 10 49 18 56 42 33 80 43 89 138

Lingerie & Under wear 3 14 30 14 10 15 11 2 11 3 8 8 7 16 13 19 28

Maternity Wear 8 44 61 33 21 30 36 7 30 10 22 23 20 50 30 44 67

Nightwear 5 30 39 23 15 16 16 3 16 4 14 17 10 22 15 25 42

Playsuits, Dungaree 11 52 91 36 29 46 47 8 28 12 28 36 25 45 38 47 75

Shirts & Blouses 7 48 52 32 18 37 27 8 27 9 24 30 17 48 24 45 60

Shorts 5 30 46 29 19 31 29 5 22 8 19 21 18 28 20 35 49

Skirt Suits 19 145 218 107 58 85 78 21 80 26 69 71 71 139 84 133 168

Skirts 20 74 147 65 48 73 77 15 52 19 59 48 36 80 54 88 114

Socks & Tights 4 27 34 22 11 18 23 4 13 6 16 17 14 21 14 28 39

Sports wear 8 35 48 29 17 28 23 5 17 8 17 25 15 39 23 32 51

Swim wear 6 38 57 22 15 29 24 5 16 6 19 19 20 34 18 28 62

Tops 7 36 60 23 19 25 28 4 20 7 20 22 16 30 24 31 55

Trouser Suits 23 121 215 117 71 82 89 18 76 29 79 94 78 137 81 110 209

Trousers, Leggings 14 87 122 49 31 62 59 14 46 19 56 54 43 91 43 64 98

Other 9 42 84 38 30 39 41 8 29 12 36 34 30 46 28 58 82

The Price Differentials shown here are Purchasing Power Parity.


55

Product Positioning

Casual

Product Smart Casual Formal

Special

Occasion

Indonesia % % % %

The Executive ID 20 54 22 4

Mango ID 10 48 13 29

Gaudi ID 35 31 20 14

GUESS ID 5 8 16 71

ESPRIT ID 18 39 23 20

Zara ID 4 21 32 43

Muji ID 9 54 16 21

Singapore % % % %

G2000 SG 18 48 17 17

ESPRIT SG 44 34 12 10

Mango SG 19 40 8 33

M)phosis SG 34 50 8 8

Zara SG 9 20 28 43

Dorothy Perkins SG 9 18 46 27

BYSI SG 47 33 10 10

Vietnam % % % %

Blue Exchange VM 25 43 8 24

PT 2000 VM 27 40 8 25

Hagatini VM 30 23 11 36

Mango VM 4 36 16 44

Calvin Klein Jeans VM 8 48 11 33

G2000 VM 10 31 34 25

ESPRIT VM 10 41 25 24

The data above is derived from consumer surveys. 5 Representative Brands. Other brands available in the core database.


56

Price

Discounting Low Price

Market

Median Price High Price

Indonesia % % % %


Mango ID 3 6 50 41

Gaudi ID 5 15 67 13

GUESS ID 1 2 29 68

ESPRIT ID 3 8 58 31

Zara ID 2 5 63 30

Muji ID 3 5 63 29

Singapore % % % %

G2000 SG 5 8 65 22

ESPRIT SG 3 7 65 25

Mango SG 3 9 55 33


Zara SG 2 6 59 33


BYSI SG 4 11 62 23

Vietnam % % % %


PT 2000 VM 4 15 63 18


Mango VM 3 5 49 43


G2000 VM 4 6 68 22

ESPRIT VM 2 7 55 36



57

Basic Quality

Median

Quality High Quality

Premium

Quality

Indonesia % % % %


Mango ID 3 18 45 34

Gaudi ID 5 27 54 14

GUESS ID 3 17 27 53

ESPRIT ID 2 18 55 25

Zara ID 2 12 53 33

Muji ID 3 13 56 28

Singapore % % % %

G2000 SG 5 20 58 17

ESPRIT SG 3 17 50 30

Mango SG 2 18 49 31


Zara SG 3 13 55 29


BYSI SG 5 20 52 23

Vietnam % % % %


PT 2000 VM 3 33 51 13


Mango VM 2 18 45 35


G2000 VM 4 15 61 20

ESPRIT VM 2 19 46 33



58

Low Product

Specification

Undifferentiat

ed Product Differentiated

High

Specification

Indonesia % % % %


Mango ID 2 8 54 36

Gaudi ID 5 14 67 14

GUESS ID 2 2 10 86

ESPRIT ID 3 7 57 33

Zara ID 2 4 63 31

Muji ID 4 6 60 30

Singapore % % % %

G2000 SG 4 9 62 25

ESPRIT SG 3 7 61 29

Mango SG 2 9 57 32


Zara SG 2 5 63 30


BYSI SG 4 10 64 22

Vietnam % % % %


PT 2000 VM 3 15 67 15


Mango VM 3 7 60 30


G2000 VM 3 7 65 25

ESPRIT VM 2 8 62 28



59

No Target

Audience

Some

Targeting

Highly

Targeted

Specific

Audience

Indonesia % % % %


Mango ID 4 16 50 30

Gaudi ID 11 25 52 12

GUESS ID 6 7 19 68


Zara ID 4 9 57 30

Muji ID 7 15 49 29

Singapore % % % %

G2000 SG 8 21 52 19


Mango SG 7 21 44 28


Zara SG 7 14 47 32


BYSI SG 10 24 44 22

Vietnam % % % %


PT 2000 VM 10 30 47 13


Mango VM 6 16 47 31


G2000 VM 9 15 53 23




60

High Volume

Median

Volumes Low Volume

Restricted

Volume

Indonesia % % % %


Mango ID 2 65 24 9

Gaudi ID 5 83 9 3

GUESS ID 0 25 54 21

ESPRIT ID 2 72 21 5

Zara ID 1 67 24 8

Muji ID 3 70 21 6

Singapore % % % %

G2000 SG 5 76 15 4

ESPRIT SG 2 65 24 9

Mango SG 3 65 24 8


Zara SG 2 65 24 9


BYSI SG 4 72 18 6

Vietnam % % % %


PT 2000 VM 4 80 12 4


Mango VM 3 61 27 9


G2000 VM 4 73 18 5

ESPRIT VM 3 67 24 6



61

Necessity

Product

Common

Product

Discretionary

Product

Luxury

Product

Indonesia % % % %


Mango ID 7 19 57 17

Gaudi ID 13 25 53 9

GUESS ID 6 7 43 44


Zara ID 3 11 69 17

Muji ID 8 12 64 16

Singapore % % % %

G2000 SG 10 23 56 11


Mango SG 5 17 57 21

M)phosis SG 10 22 50 18

Zara SG 6 16 50 28


BYSI SG 11 25 46 18

Vietnam % % % %


PT 2000 VM 7 39 44 10


Mango VM 6 14 49 31


G2000 VM 10 16 56 18




62

Frequent

Cleaning

Average

Cleaning

Infrequent

Cleaning

Specialist

Cleaning

Indonesia % % % %


Mango ID 7 31 56 6

Gaudi ID 14 38 41 7

GUESS ID 7 43 15 35


Zara ID 5 57 26 12

Muji ID 8 43 33 16

Singapore % % % %

G2000 SG 12 39 38 11


Mango SG 7 20 61 12


Zara SG 7 53 31 9


BYSI SG 10 20 59 11

Vietnam % % % %


PT 2000 VM 9 20 61 10


Mango VM 6 37 40 17


G2000 VM 9 56 23 12




63

Simple

Merchandisin

g

Display

Merchandisin

g

Featured Complex

Proposal

Indonesia % % % %


Mango ID 5 22 51 22

Gaudi ID 14 40 38 8

GUESS ID 6 9 26 59


Zara ID 3 14 64 19

Muji ID 7 20 54 19

Singapore % % % %

G2000 SG 9 30 50 11


Mango SG 7 30 33 30


Zara SG 7 17 58 18


BYSI SG 10 36 39 15

Vietnam % % % %


PT 2000 VM 8 52 32 8


Mango VM 5 21 52 22


G2000 VM 9 20 52 19




64

Basic

Advertising

Feature

Advertising

Target

Advertising

Complex

Advertising

Indonesia % % % %


Mango ID 8 27 42 23

Gaudi ID 14 49 29 8

GUESS ID 7 10 44 39


Zara ID 5 17 57 21

Muji ID 9 22 54 15

Singapore % % % %

G2000 SG 13 36 40 11


Mango SG 8 30 39 23


Zara SG 7 22 50 21


BYSI SG 12 37 36 15

Vietnam % % % %


PT 2000 VM 11 59 20 10


Mango VM 7 25 48 20


G2000 VM 11 24 51 14




65

Brand Positioning Tactics & Strategy

Current Tactical Brand Model



66

Strategic Brand Objectives


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Indonesia

The Executive ID

Mango ID

Gaudi ID

GUESS ID

ESPRIT ID

Zara ID

Muji ID

Singapore

G2000 SG

ESPRIT SG

Mango SG

M)phosis SG

Zara SG

Dorothy Perkins SG

BYSI SG

Vietnam

Blue Exchange VM

PT 2000 VM

Hagatini VM

Mango VM

Calvin Klein Jeans VM

G2000 VM

ESPRIT VM

Strategic Brand Objectives

Brand Name Product Design Shopping Experience Advertising


67

Functional Positioning - Symbolic Positioning - Experiential Positioning


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Indonesia

The Executive ID

Mango ID

Gaudi ID

GUESS ID

ESPRIT ID

Zara ID

Muji ID

Singapore

G2000 SG

ESPRIT SG

Mango SG

M)phosis SG

Zara SG

Dorothy Perkins SG

BYSI SG

Vietnam

Blue Exchange VM

PT 2000 VM

Hagatini VM

Mango VM

Calvin Klein Jeans VM

G2000 VM

ESPRIT VM

Functional - Symbolic - Experiential

Functional Symbolic Experiential Unknown


68

Customer Value Propositioning



69

Value Concept & Positioning

The data above is derived from trade surveys. 5 Representative Brands. Other brands available in the core database.


70

Brand Differentiation Propositions



71

Key Selling Messages



72

Communications Tactics



73

Advertising Tactics



74

Media & PR Tactics



75

Web & Online Tactics



76

Point of Sale Tactics



77

Merchandising



78

Product Display



79

Korean Brands

Awareness of existing Korean Brands



80

Trade Buyer Perceptions of existing Korean Brands



81

Customer Base Perceptions of existing Korean Brands



82

Perceived Strengths and Weaknesses of existing Korean Brands



83

Market Entry Management Factors

Women’s Fashion Distribution

Clothing brands differentiate themselves in terms of price, quality and design. For the purposes of the

rest of this section clothing products will be categorised as:

High range designer brands: These brands are committed to luxury, style, and quality. These

iconic designer brands, typically purchased by the well-off, include for example, Gucci, Dolce

& Gabbana and Giorgio Armani. Most of the high range designer brands have a portfolio of

brands; for example, Gucci, Alexander McQueen and Yves Saint Laurent are all brands of the

Gucci Group.

Middle range high street brands: These brands bring designer trends to the high street; they

are design-led and are sold at high street prices. They include such well-known names as

United Colours of Benetton, Sisley, River Island, Nike, and Adidas. Clothing companies may

own more than one middle range high street brand; for example, Oasis, Coast and

Warehouse, which is owned by Aurora Fashions.

Low cost brands: Low cost brands offer contemporary designs and current fashion at low

prices, especially distributed in department stores and supermarkets.

Retail Level

There are three types of clothing retailers: Vertically-integrated Retailers; Independent Retailers; and

Department Stores.

Vertically-integrated retailers operate wholly-owned retail outlets and sell only the clothing

brand of that company, e.g., River Island, Topshop, Wallis and Warehouse. Vertically-

integrated retailers tend to have an international presence. Many high range designer brands,

middle range high street brands and low cost brands are vertically integrated. They are

located on main streets and in shopping centres; in addition high range designer brands and

middle range high street brands sell their clothing ranges in department stores. Some

vertically integrated grocery retailers, such as Wal-Mart, Marks & Spencer, and Carrefour also

feature in this category.

Independent retailers sell a selection of brands and are independent of the brands they sell.

Independent retailers can take many forms. Their stores tend to sell middle range high street

brands, however some may sell high range designer brands. Independent retailers tend to

specialise in one type of clothing, such as ladies’ clothing, bridal, sports clothing, or

menswear, and generally provide their customers with more choice and variety for those

categories. Independent retailers may own and operate a chain of stores under a common

fascia and are typically known as “branded resellers”. Other independent retailers may be

small local boutiques. Independent clothing stores are mainly located on the main shopping

street in towns and cities and in shopping centres.


84

Department stores are quite different. They sell a wide variety of products from clothing to

home-wares, and electrical appliances to cosmetics. In terms of clothing, department stores

tend to sell high range designer brands and/or middle range high street brands; low cost

brands are rarely sold in department stores. Department stores are generally located in

central locations in cities and large towns.

A department store is a hybrid retailer. As detailed in subsequent paragraphs, branded

clothing is available in their stores from vertically-integrated companies locating in the store

through a “concession” arrangement and/or is “own-bought” and resold by the stores

themselves. A few department stores also sell own-brand clothing labels. For example,

“Début” is a Debenhams own-brand clothing line.

Concession arrangements occur where vertically-integrated branded clothing companies

have an agreement to sell in a dedicated area of a department store. Many of these are the

same brands sold in high street vertically-integrated stores. In effect, the department store is

the concessionaire’s landlord and earns a rent or commission from the concession.

Therefore, the department store has less risk as it does not own the concessionaire’s stock,

i.e., it is not a reseller. However, a department store’s commission is affected by fluctuations

in sales. The actual stock and the profit from sales, excluding the commission, belong to the

“concession”, i.e., the vertically-integrated brand.

Own-bought clothing is branded clothing purchased by the department store from the

manufacturer or its agent or distributor for resale. For own-bought clothing the department

store bears the risk. Own-bought retailing is therefore similar to the arrangement described for

independent stores, where a selection of brands is sold in the same store; the difference

being that independent stores typically specialise in one type of clothing, whereas department

stores sell different types of clothing, i.e., menswear, ladies’ wear, children’s clothing and so

on.

Although clothing may be retailed through department stores under different arrangements, it

is not obvious to the consumer which brands operate under each arrangement, i.e., whether

the brand is sold under a concession or own-bought arrangement, as their presentation is

seamless. The percentage of clothing that is own-bought versus concession varies across

department stores. In general, men’s clothing tends to have more own-bought arrangements.

Nature of Competition Clothing retailers compete in a variety of ways. Retailers compete in terms of brand, value, and

location.

Brand Competition

At the retail level brand competition tends to differ by type of clothing retailer. Vertically-integrated

international brands compete at a high level by promoting their branded product internationally.

Independent retailers and department stores compete through the range of brands and products they

stock in their stores, and by building store image. In order to get the brands they want into their store,

department stores further compete on the commission rate, location in store and merchandising.

Branded reseller chains, for example, sports retailers, also compete on store reputation through store


85

advertising and promotions etc. Department stores compete on store image by creating a “shopping

experience” and through promotional activity to attract footfall.

The past decade has seen a big increase in the number of brands of clothing available, especially in

terms of the location density of the global brands like Zara and H&M.

Value

Retailers within the same clothing categories compete on value, i.e., the combination of price, design

and quality. Clothing retail competition tends to start with competition among different brands within

the same range, be it high range, middle range or low cost. Once a brand positions/markets itself

within one of the clothing categories, it competes mostly with other brands within the same range by

pricing at a level that reflects the quality, design and brand image that has been created.

In terms of pricing, vertically-integrated retailers operate a system of national pricing and thus at a

retail level compete more on quality of service, shop fit etc. Vertically-integrated brands are

increasingly also offering on-line shopping.

Low cost brands primarily compete on price by offering contemporary design and current fashion at

low prices. The ultimate goal of these brands is to set their prices low. Consumers are looking for

value for money when purchasing these brands.

Location

Location is of critical importance in clothing retail. In most countries, despite the growing number of

out of town shopping centres, the main street is still a major draw for clothing retail. Thus, there is

demand and competition among all clothing retailers for prime main street locations.

Vertically-integrated international clothing brands sold throughout the world and the outlets of these

brands are similar in design and layout. Independent retailers and department stores can differ

somewhat in different areas.

Although the international brands are the scale in each country is often quite different. Retailers

operating in the some countries tend to have larger selling areas and therefore can offer a broader

product range.

Supply Chain

The supply chain and, in particular, distribution for each type of clothing retailer and supplier, tends to

vary. Vertically-integrated branded companies supply clothing internally to retailers, while other

branded clothing companies supply clothing through wholly-owned wholesalers, agencies or third

party distributors.

Clothing is typically designed by the brands themselves and manufactured mostly in the Far East, and

sometimes in Europe or South America. In certain instances, the manufacturer is owned and operated

by the brand and in other instances it is outsourced by the brand. Some brands use buying teams or


86

groups to source their products around the world and are not aligned to, or contracted, with any

manufacturer; they may also have different buying teams for different markets. Occasionally, brands

outsource part of their manufacturing operations to distributors.

Vertically-integrated branded retailers and concessions in department stores source their product

from their parent company. Vertically integrated brands internalise the supply, wholesale and retail

aspects of their supply chains. The retailers and wholesalers are part of the branded company and

operate under the instruction of the parent company. The brand supplies its products to its stores and

concessions in department stores. There is no intermediary or third party involved in the supply chain.

For example, River Island and Topshop operate a vertically-integrated supply chain.

Own-bought clothing suppliers to independent stores and department stores, use wholly-owned

distributors, agencies and/or third party distributors in each country. Which avenue a supplier takes

ultimately depends on how the branded company wishes to operate its distribution and the benefits or

service each distribution type can offer.

Large multinational brands tend to have wholly-owned wholesalers based in the larger countries.

Some brands have two separate wholly-owned wholesalers for each trading cell; others have one

wholly-owned wholesaler for the two jurisdictions. In some cases, rather than an office, the brand has

a country representative, an employee of the brand, to manage the supply. Most wholly-owned

wholesalers use selective distribution arrangements, i.e., supply to a number of different independent

stores and department stores. For example, a wholly-owned wholesaler may supply that brand’s retail

chain plus to other distribution chains. In the case of some brands, there may be an exclusive

distribution arrangement whereby one retailer and its stores, or a chain, receives exclusivity for the

product in the country.

Some brands distribute through independent agents. The agent places the order to the brand on

behalf of the retailer and receives a commission in return for placing the order. The agent does not

buy the product and, therefore, in some sense the agent is an arm of the brand. Retailers may

negotiate terms and prices either with the agent or the branded supplier; at what level the retailer

negotiates terms varies depending on retailer size. Most agents distribute more than one brand.

Branded companies and retailers tend to prefer not to deal with a “middle man”, therefore, these types

of agency agreements are rarely found in the market.

Some brands distribute their product through third party distributors. Third party distributors buy

products from the brand and resell it to retailers in the country, i.e., they are the customers of the

brand and have an account with them. Therefore, third party distributors take on a business risk. For

example, Distribution downstream to the retail level can be either an exclusive or selective

arrangement. However, given the preference of not dealing with a “middle man” distributors are rarely

found in the market. Most of the brands sold through third party distributors are lesser known brands.

Nature of Competition

Ultimately suppliers compete for consumer demand by building brand awareness and through

interactions with retailers. However, clothing suppliers compete mostly at the brand level. Brand

competition is a critical feature of clothing competition at supply level. Brands compete by establishing

a brand that reflects the image and clothing category in which they wish to operate; high range,

middle range or low cost. They will also price their product in a way that reflects the clothing category

and brand image they have created. Where they sell through independent retailers and department

stores, they generally choose retailers whose own image is aligned to that of the clothing brand’s

image.


87

High range brands compete with each other by establishing a desirable brand through fashion shows,

sponsoring big international entertainment events etc. Fashion weeks, held in many different cities,

are important events for high range brands. In the fashion industry designers compete with each other

to try to take the lead on the season’s fashion trend, i.e., be the trend-setter.

Department stores usually use wholly-owned distributors.

Middle range brands compete with each other through advertising, sponsoring different events, or

selling celebrity fashion lines using celebrity fashion icons to represent the brand. For example,

Topshop stocks a Kate Moss range and sports brands such as Nike, Adidas, and Puma compete

through advertising and using well-known sportsmen and women to represent the brand; they also

sponsor different sports events and/or teams to promote their brand image and awareness.

Suppliers to low cost retailers (i.e. manufacturers in the Far East and South America etc.) compete on

price and quality

Agencies compete by providing competitive commissions to the brands. Third party distributors also

compete with each other, by the services they offer, guaranteed sales volume and other commercial

activities.

Suppliers also compete in their interactions with retailers, in terms of space, commission, and location

in the store. For example, concessions in department stores will compete for the best location in the

store, i.e., where there is the most footfall. Suppliers also compete to have their products sold in the

signature stores in a city.

Supplier Price Differentials

There are some supplier price differentials in each county and these are usually in the range 1-10%.

This suggests that, despite the rising cost of doing business, the level of competition in clothing and

footwear in most countries (as well as the expansion in the volumes sold kept prices from rising

relative to other countries except when the exchange rates changed significantly.

The 2008 recession and the depreciation of some currencies, coupled together, have significantly

impacted upon the clothing retail business. Retail sales for textiles and clothing declined in many

countries. Increasing numbers of clothing retail chains have gone into administration in some

countries, due largely to the global economic crisis.

The effect of the price gap between some countries has been that footfall and same brand sales in

some countries have reduced significantly due to consumers changing their behaviour, where the

effect is not so significant in other countries.

Consumers’ shopping behaviour has changed in a number of ways: Consumers are reducing the

volume of purchases they are making. Consumers are increasingly buying from discount suppliers.

Consumers are switching. Low cost branded stores do not appear to have been as negatively

affected as other stores; what they have lost in terms of consumers reducing purchases overall, they

have gained from consumers switching from mid-range clothing to their low price/high value stores. In

addition, Retailers contend that consumers are switching to retailers that source their product in

currencies less impacted by the exchange rate.


88

Retailer Reaction

The exchange rate fluctuations and the global recession have occurred simultaneously and it is

therefore not clear how much of the decline in sales is attributable to the recession and how much to

the exchange rates.

In response, retailers have tried to cut costs by reducing the cost of doing business and the cost of

product. They have reduced the cost of doing business by reducing opening hours, working hours and

pay.

With respect to cost of product, retailers can either try to renegotiate a price with their supplier, switch

supply by switching brands, or by-pass the current branded supplier and source product from an

alternative supplier.

The extent of exchange rate pressure and reduced footfall has driven retailers to go back to their

suppliers, be it the manufacturer, wholly owned wholesalers, third party distributors or an agency,

requesting price reductions. Renegotiating prices with suppliers may be difficult due to the seasonality

of clothing retail and limited buyer power of stores in some countries.

Generally, retailers organise their stock for at least the following two seasons, or perhaps even for the

coming year. Thus retailers decide on their stock and volume of purchases between six months to a

year in advance; simultaneously price for the product is agreed typically in US$. In addition, in order

to minimise currency risk, some retailers may hedge their currency at that time. Thus, due to these

agreed prices and volumes, retailers are finding it difficult to renegotiate price with their suppliers.

Retailers will, at the time of agreeing price with their supplier, set their retail prices. Given that this

may be done a number of months in advance, by the time product appears on the shelf, exchange

rates may have changed. This effect should diminish as retailers purchase the next round of stock

which will be based on more recent exchange rates.

The ability of a retailer to negotiate price reductions will depend also on its importance to the supplier,

i.e., the extent of its buyer power. National retailers are often small in international terms.

Switching brands may not be a possible option if the brand is a “must have” brand for the retailer, for

example, consumers expect all sports stores to have certain international sports brands. It will

negatively affect the retailer’s image if it does not have the must have brands for certain categories of

clothing.

Retailers, independent stores and department stores contend that sourcing product by by-passing the

current source of supply, i.e., the wholly-owned wholesaler, third party distributor or agency, is

difficult. They state that the head office or equivalent regional distributor will direct the retailer back to

the designated national distributor. Most international brands use wholly-owned wholesalers, thus the

alternative source of supply is simply a different arm of the same company. In some cases retailers

have been successful in renegotiating the currency in which they pay, but in most cases this has been

refused.

Retailers’ attempts to get better prices following currency depreciation may be more difficult in some

countries. Some retailers that operate in several countries may be able to benefit from sourcing

product for their stores in one country through their supply chain in another country. Thus, any

potential benefits arising from the changes in one currency may be spread evenly across that retailer’

outlets.

For department stores and independent retailers, alternative sources of supply, such as the grey

market, may be an option. However, product from the grey market is seldom the latest fashion and


89

may be limited in the range and sizes it comes in. It also has limitations in terms of consistency of

supply, and thus may not be an adequate option.

The individual stores of vertically-integrated middle range retailers do not have any alternative option

to source product, as they must source their product internally. Prices in these stores are not set by

the retailer but the head office of the brand and therefore they are constrained by the controlled

supply channel in which they operate. These vertically-integrated brands are large international

brands that operate on a large scale. Any national market is likely represents only a small portion of

their overall business.

Some low cost retailers are not experiencing as much difficulty in switching sources of supply as

independent stores or department stores. This is due to the fact that they tend to be vertically-

integrated and are not aligned with any one supplier but instead they source manufactured product

from the Far East based on the best price, design, quality and range. These low cost retailers market

themselves on price.

Despite the constraints faced by some retailers, they are reacting by re-pricing clothing, increasing

sales/discounts and promotions, and trying to source new products that have more attractive price

and quality characteristics.

Supplier Reaction

Suppliers’ responses to increased pressures from retailers to reduce prices will depend on their ability

and willingness to reduce prices.

Distributors of brands under pressure from retailers to reduce prices will themselves be limited in their

ability to reduce prices to the extent that they can renegotiate a price reduction with their upstream

supplier. Brands source product directly from their own, or contracted, manufacturers. This is often

done in the Far East or other countries and therefore they operate in a number of currencies. Supplier

costs are therefore largely in various exchange rate susceptible currencies. In reality, national

suppliers may have a small portion of costs in their own currency and may not be able to pass on the

current “expectation” that exists in the market.

In addition, branded clothing companies tend to be vertically integrated upstream through contracted

manufacturers and downstream through wholly-owned retailers and/or distributors; due to this tight

distribution arrangement, the seasonality, and likely hedging aspects of suppliers’ operation, the

extent to which they can quickly react to changes in currency fluctuations will be limited.

Overall, suppliers are being negatively affected by falling sales and the depreciation of operating

currencies and therefore they do not want to lose revenue in the market as well. Some retailers stated

that the currency depreciation warranted a price increase in their country but that branded companies

would find it difficult to increase prices in that country because of recessionary pressures.

The bigger the market, the riskier it is to increase prices. In addition, branded companies tend to

operate across a number of countries.


90

Conclusion

Differences in price level between different national markets have to some extent always been

present, and changes in the differences in price level arise, amongst other reasons, due to currency

movements. Since 2008 clothing and footwear prices in one country have fluctuated in comparison

with other countries. The effect of the pricing changes is driving consumers to change their shopping

behaviour to the detriment of the majority of clothing retailers. Low cost clothing retailers however

have not been as negatively affected; what they may have lost in terms of reduction in consumer

spending they have gained from price conscious consumers switching to them. Among other things,

retailers have responded by increasing sales/discounts and promotions, and in some instances re-

ticketing items to bring down in price.

However, the extent of the response of retailers is limited by the extent to which they can reduce their

costs of doing business, for example, reducing opening hours, and their cost of product. The ability to

reduce cost of product is constrained by three elements; the seasonality of the clothing market, limited

buyer power and the ability to switch sources of supply.

Clothing stock and prices are determined six to 12 months before they appear in store. In most

countries retailers are relatively small internationally.

Low cost retailers can easily switch sources of supply, though with a time lag. They are not aligned

with any particular manufacturer and source product based on a mixture of quality and low price. If

they are not happy with supply they will source it from elsewhere.

At the other end, vertically-integrated retailers operating in some overseas countries cannot switch

supply and are constrained by the parent company’s distribution arrangements. The stock available to

these stores is purchased centrally; their ability to switch will depend on how quickly they can

renegotiate price with their manufacturer or find another source of supply elsewhere.

Clothing retailers who resell a range of brands (independent retailers and department stores) also

have limited ability to switch supply and find identical product elsewhere. They also have long term

relationships with brands which they need to maintain. They are thus seeking price reductions from

suppliers.

The extent to which these retailers can negotiate lower prices is dependent on their buyer power.

Department stores and branded resellers may be able to source supply in favourable currencies

through their international operations. In some instances locally-operated retailers have been able to

switch to paying in a different currency but in the main they have not. Thus locally operated retailers

may be temporarily disadvantaged compared to international retailers.

The instability of the exchange rates has had a significant impact on clothing retail in many countries.

International brands which manufacture outside the country will likely adjust their forthcoming

seasons’ prices in line with the currency fluctuations.

Clothing brands differentiate themselves in terms of price, quality and design. The clothes are

generally manufactured in mainland Europe and the Far East. The depreciation in the value of some

currencies and the recession have led to a fall off in demand for clothing generally, though low cost

retailers appear to be benefiting from consumers switching to them from more expensive brands.

Retailers have responded by increasing sales/discounts and promotions, and in some instances by

re-ticketing items to bring down the price. The extent to which clothing retailers may reduce prices is

dependent upon the extent to which they can reduce their costs.


91

Their ability to reduce the amount they pay for the products they sell is constrained by three elements;

the seasonality of the clothing market, limited buyer power and the ability to switch sources of supply.

Seasonality in the Clothing Market: The prices paid by retailers to suppliers for clothes were

set six to twelve months ago and renegotiating those prices is difficult, though retailers have

indicated that they have had some limited success.

Limited Buyer Power: The extent to which retailers can negotiate lower prices is dependent

on their buyer power. Stores that have access to stock through related overseas stores have

slightly more scope to access products at lower prices. In some instances retailers have been

able to switch to paying in other currencies but in the main they have not.

Switching Sources of Supply: The ease with which clothing retailers may switch to alternative

better-value sources of supply depends upon the type of clothing that they retail. Low cost

retailers can most easily switch sources of supply, though with a time lag (due to seasonality).

Such retailers are not so aligned with any particular manufacturer. The supply chains of the

mid-range retailers who operate wholly-owned retail outlets and sell a single clothing brand,

e.g., River Island, Topshop, Wallis and Warehouse, are far less flexible. These retailers tend

to have an international presence; purchasing and distribution arrangements for the outlets in

any particular country are typically determined centrally. Clothing retailers who resell a range

of brands (e.g. sportswear stores and department stores) also have limited ability to switch

sources of supply. Such retailers argue that they have long-term relationships with branded

clothing suppliers which they need to maintain. Alternative sources for a particular brand

cannot be relied on to come in the full range of sizes or colours or to be from the current

season. A notable feature of clothing retail is the apparent low level of alternatives for many

retailers. With the exception of low cost clothing, competition in clothing is largely about

branding and image, within a particular price/quality range. Thus, it is difficult for stores with

on-going relationships with brands to switch to alternative brands. As the seasons roll on and

the seasonal pattern of sales continues, all brands have the opportunity to set national prices

in a way that reflects more recent exchange rates.


92

Distributors – Market Entry choices

The data above is derived from trade surveys.


93

Retail Presence – Market Entry choices



94

Distribution Channel: Advantages – Disadvantages



95

Market Entry options for Domestic Brands



96

Market Entry options for Established or Global Brands



97

Market Entry Features



98

Start-up Costs

Start-up Costs, Initial Investment and Product Launch Balance sheet

Direct and Indirect Market Entry

There are three scenarios examined in the data below, A Brand / Franchise Store launch, and Independent Store launch (probably carrying Branded product lines) and the use of a Distributor or Exclusive Wholesaler to introduce a new Brand to the country concerned.

The data provides the following matrices:-

1) Time from Start to Store Opening 2) Start-up Investment Cost (excluding Inventory)

3) Market Entry Investment, by type of Market Entry, with Economies of Scale:

A Cost comparison given for 1, 3, 5, and 10 stores on the grounds that there may be some cost advantages associated with the economies of scale of opening multiple outlets.

Inventory Costs

The Start-up costs data excludes the initial Inventory investment. This is because there are a large

number of ways in which Franchised Brands, Independent Retailers, In-Store Departments and sales

via Distributors are financed.

Some Franchised Brands offer Consignment deals, or Sale-or-Return deals, or inventory financing.

Similarly there are inventory financing deals available for In-Store Departments.


99

Brand Store Start-up Costs

100 SqM selling space

US$

Re

nta

l M

on

th 1

Pro

pert

y D

ep

os

it

Sto

re f

itti

ng

Uti

liti

es

& D

ep

osit

Sto

re E

qu

ipm

en

t &

Su

pp

lie

s

Bu

sin

es

s E

xp

en

se

s

IT E

qu

ipm

en

t &

Se

rvic

es

Ba

nk

ing

& P

ay

me

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Syste

m

Le

ga

l &

Ac

co

un

tin

g

Ma

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tin

g

Sto

re O

pe

nin

g &

PR

Ca

sh

-in

-Ha

nd

To

tal B

ran

d S

tore

Sta

rt-

up

Co

st

Australia 62416 62416 90000 1533 7541 3473 4223 987 3353 9122 3762 18100 266926

Bangladesh 1937 1937 8000 212 888 371 548 133 277 865 332 1500 17000

Cambodia 2180 2180 7500 146 623 287 395 106 256 597 277 1480 16027

China 33000 33000 13000 289 1162 515 743 144 390 1074 448 2053 85818

Hong Kong 101833 101833 90000 2300 10248 3529 5939 1096 3566 8516 3156 16898 348914

India 11700 11700 12000 272 1074 575 608 167 385 1034 404 1974 41893

Indonesia 5600 5600 9000 207 855 416 511 102 256 865 365 1678 25455

Japan 73500 73500 95000 1873 9789 3144 4376 1205 2962 8060 3447 15401 292257

Malaysia 34000 34000 20000 499 1708 813 1236 306 665 2043 833 3916 100019

New Zealand 13466 13466 40000 789 2961 1303 2266 469 1287 3423 1411 6160 87001

Philippines 2025 2025 8000 154 575 347 437 83 225 588 273 1365 16097

Singapore 30000 30000 35000 836 3907 1720 1861 421 1112 3192 1521 7404 116974

South Korea 31333 31333 55000 1092 4462 2652 3090 646 1749 4992 2058 8638 147045

Sri Lanka 2430 2430 7500 156 747 277 479 104 252 729 253 1283 16640

Taiwan 23000 23000 35000 869 3244 1576 2415 475 1378 3492 1458 6417 102324

Thailand 9450 9450 9500 162 863 356 469 114 296 885 361 1777 33683

Vietnam 18166 18166 9000 204 863 419 553 131 337 882 392 2073 51186



100

Independent Store Start-up Costs


US$

Re

nta

l M

on

th 1

Pro

pert

y D

ep

os

it

Sto

re f

itti

ng

Uti

liti

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Sto

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xp

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s

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t &

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Ba

nk

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ay

me

nts

Syste

m

Le

ga

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Ac

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tin

g

Ma

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tin

g

Sto

re O

pe

nin

g &

PR

Ca

sh

-in

-Ha

nd

To

tal In

de

pe

nd

en

t

Sto

re S

tart

-up

Co

st

Australia 56000 56000 51150 1133 2366 2466 2775 888 2755 7332 2553 11100 196518

Bangladesh 1979 1979 5640 135 309 282 326 98 255 711 217 932 12863

Cambodia 2180 2180 5000 103 195 239 252 87 187 499 167 857 11946

China 36333 36333 6960 166 306 340 403 116 348 906 304 1420 83935

Hong Kong 106166 106166 57850 1365 2600 2710 3410 1290 2637 7798 2594 11544 306130

India 10125 10125 8000 192 357 355 492 145 316 906 293 1194 32500

Indonesia 5425 5425 5940 140 263 322 357 111 252 567 225 1017 20044

Japan 78750 78750 48600 1297 2116 3093 2936 1259 2704 6478 2172 8960 237115

Malaysia 32333 32333 12180 282 487 665 762 219 603 1381 519 1977 83741

New Zealand 13866 13866 21840 538 991 946 1247 476 865 2687 935 4310 62567

Philippines 2340 2340 4300 110 255 266 272 69 225 566 176 807 11726

Singapore 35000 35000 25000 535 1290 1087 1299 460 901 2966 847 4540 108925

South Korea 36333 36333 31850 850 1340 1820 2030 582 1262 3452 1137 6357 123346

Sri Lanka 2317 2317 4900 111 178 195 302 79 217 526 190 867 12199

Taiwan 24750 24750 21580 621 1297 1084 1456 444 1054 2599 1062 3987 84684

Thailand 8400 8400 5400 144 255 255 336 86 228 559 228 859 25150

Vietnam 15333 15333 6650 139 322 301 339 98 269 811 246 1257 41098



101

Brand In-Store Start-up Costs


US$

Re

nta

l M

on

th 1

De

po

sit

Sto

re f

itti

ng

Uti

liti

es

& D

ep

osit

Sto

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t &

Su

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Bu

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s

IT E

qu

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Ba

nk

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& P

ay

me

nts

Syste

m

Le

ga

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Ac

co

un

tin

g

Ma

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tin

g

Sto

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nin

g &

PR

Ca

sh

-in

-Ha

nd

To

tal

Bra

nd

In

-sto

re

Sta

rt-u

p C

os

t

Australia 18666 18666 18012 455 1776 956 1121 356 1154 2665 1887 6554 72268

Bangladesh 526 526 1980 62 197 109 145 36 110 235 154 543 4623

Cambodia 575 575 1850 50 154 102 101 38 82 169 144 464 4304

China 9166 9166 2660 84 250 154 164 54 132 302 233 724 23089

Hong Kong 27354 27354 20800 591 2056 1276 1642 357 1009 2614 1806 6119 92978

India 3459 3459 2540 75 286 152 179 45 151 313 214 772 11645

Indonesia 1604 1604 2055 60 189 96 121 46 98 232 183 521 6809

Japan 22312 22312 19800 595 1569 1011 1210 380 994 2064 1688 5219 79154

Malaysia 9750 9750 4585 142 506 245 308 115 264 590 422 1167 27844

New Zealand 3433 3433 7860 232 813 425 626 175 407 953 691 2059 21107

Philippines 669 669 1837 41 167 102 112 38 76 201 126 530 4568

Singapore 9833 9833 8625 262 912 438 657 192 409 860 703 2353 35077

South Korea 8750 8750 12687 312 1197 608 841 253 624 1305 1008 3628 39963

Sri Lanka 680 680 1637 46 177 92 116 29 76 218 126 500 4377

Taiwan 7000 7000 7930 262 688 542 625 180 441 881 669 2788 29006

Thailand 2712 2712 1995 48 197 88 156 43 110 229 158 571 9019

Vietnam 4750 4750 2520 71 192 104 145 48 116 295 199 742 13932



102

Distributor / Exclusive Wholesaler Sign-up Costs

US$

Su

pp

ort

Eq

uip

men

t &

Su

pp

lie

s

Bu

sin

es

s E

xp

en

se

s

IT S

erv

ice

s

Ba

nk

ing

Le

ga

l &

Ac

co

un

tin

g

Ma

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tin

g S

up

po

rt

Pu

bli

c R

ela

tio

ns

Mis

ce

lla

neo

us

Dis

trib

uto

r /

Ex

clu

siv

e

Wh

ole

sa

ler

Sig

n-u

p

Australia 1886 3866 2544 2887 3654 6554 2443 2544 26378

Bangladesh 183 396 277 381 298 507 197 238 2477

Cambodia 176 305 279 238 288 428 166 189 2069

China 246 590 436 432 387 743 305 266 3405

Hong Kong 2006 5437 3156 3991 3411 6893 2425 2675 29994

India 293 562 455 470 473 781 319 277 3630

Indonesia 178 485 302 355 358 543 191 249 2661

Japan 2036 4133 3247 3558 3587 6005 2132 2275 26973

Malaysia 571 1102 686 720 762 1267 522 472 6102

New Zealand 790 1619 1321 1410 1291 2287 831 810 10359

Philippines 166 291 268 341 235 500 168 208 2177

Singapore 745 1968 1341 1679 1444 2264 843 901 11185

South Korea 1116 2755 1554 2388 1883 3378 1197 1197 15468

Sri Lanka 142 281 291 293 269 500 162 168 2106

Taiwan 945 1900 1274 1405 1554 2757 900 1034 11769

Thailand 201 438 280 368 283 600 191 208 2569

Vietnam 271 442 314 411 358 725 242 252 3015



103

Start Times Weeks: Brand Store

Weeks

Init

ial C

on

tra

ctu

al

Neg

oti

ati

on

s

Pre

mis

es

Acq

uis

itio

n

Reg

ula

tory

Req

uir

em

en

ts

Sto

re f

itti

ng

Sy

ste

ms

In

sta

lla

tio

n

& S

taff

tra

inin

g

La

un

ch

Dela

y

To

tal

Tim

e

Australia 12 3 4 5 3 5 32

Bangladesh 14 4 7 6 4 7 42

Cambodia 14 5 7 7 4 9 46

China 12 4 6 8 4 8 42

Hong Kong 10 3 3 6 3 5 30

India 14 4 6 9 4 7 44

Indonesia 12 3 4 5 3 6 33

Japan 13 3 4 5 3 5 33

Malaysia 10 4 6 7 4 8 39

New Zealand 11 3 4 4 3 5 30

Philippines 14 3 5 7 3 7 39

Singapore 13 2 4 4 3 5 31

South Korea 11 3 4 4 2 5 29

Sri Lanka 14 4 5 8 4 8 43

Taiwan 14 3 4 5 3 5 34

Thailand 9 4 5 7 4 7 36

Vietnam 14 4 7 6 4 8 43



104

Start Times Weeks: Independent Store

Weeks

Init

ial C

on

tra

ctu

al

Neg

oti

ati

on

s

Pre

mis

es

Ac

qu

isit

ion

Reg

ula

tory

Req

uir

em

en

ts

Sto

re f

itti

ng

Sy

ste

ms

In

sta

lla

tio

n

& S

taff

tra

inin

g

La

un

ch

Dela

y

To

tal

Tim

e

Australia 5 3 4 5 3 4 24

Bangladesh 4 4 6 7 4 4 29

Cambodia 6 5 7 7 4 7 36

China 4 4 5 7 3 5 28

Hong Kong 5 3 3 4 2 3 20

India 4 4 6 6 3 5 28

Indonesia 5 3 4 5 2 4 23

Japan 6 2 4 4 2 4 22

Malaysia 4 4 6 7 4 6 31

New Zealand 5 2 3 4 2 3 19


Singapore 6 3 4 4 2 4 23

South Korea 4 3 4 5 2 3 21

Sri Lanka 5 4 6 6 3 5 29

Taiwan 4 3 4 5 2 4 22

Thailand 4 3 5 6 3 5 26

Vietnam 5 4 6 7 3 5 30



105

Start Times Weeks: Distributor / Exclusive Wholesaler

Weeks

Init

ial C

on

tra

ctu

al

Neg

oti

ati

on

s

Fin

an

cia

l

Arr

an

ge

me

nts

Reg

ula

tory

Req

uir

em

en

ts

Ma

rke

tin

g S

up

po

rt

Sy

ste

ms

In

sta

lla

tio

n

& S

taff

tra

inin

g

Deli

ve

ry L

ag

&

La

un

ch

Dela

y

To

tal

Tim

e

Australia 7 2 4 4 3 4 24

Bangladesh 9 2 6 5 3 5 30

Cambodia 7 3 7 7 4 8 36

China 7 3 6 6 3 5 30

Hong Kong 6 2 4 4 2 4 22

India 8 2 6 6 4 6 32

Indonesia 6 2 4 5 2 5 24

Japan 6 1 4 4 2 3 20

Malaysia 6 3 6 8 4 7 34

New Zealand 6 2 4 4 2 4 22


Singapore 6 2 4 4 2 5 23

South Korea 8 2 4 4 2 5 25

Sri Lanka 8 3 6 6 4 5 32

Taiwan 8 2 4 4 2 5 25

Thailand 6 3 5 6 3 6 29

Vietnam 5 3 5 5 3 7 28



106

Economies of Scale with multiple Stores

Brand Store 100SqM

Independent Store 100SqM

Brand In-store Start-up 25SqM

Per outlet

US$ ‘000

Sin

gle

Sto

re

3 O

utl

ets

5 O

utl

ets

10

Ou

tle

ts

Sin

gle

Sto

re

3 O

utl

ets

5 O

utl

ets

10

Ou

tle

ts

Sin

gle

Sto

re

3 O

utl

ets

5 O

utl

ets

10

Ou

tle

ts

Australia 266 144 145 150 196 122 114 109 72 45 43 42

Bangladesh 17 6 6 6 12 5 5 5 4 Cambodia 16 6 6 6 11 5 5 5 4 China 85 66 64 64 83 74 64 57 23 18 17 17

Hong Kong 348 225 217 221 306 225 202 183 92 62 61 59

India 41 25 25 24 32 21 19 19 11 7 7 7

Indonesia 25 13 13 14 20 12 11 10 6 3 3 3

Japan 292 170 167 170 237 170 157 144 79 49 50 47

Malaysia 100 73 69 67 83 67 61 55 27 20 20 18

New Zealand 87 37 38 38 62 33 32 30 21 9 9 10

The Philippines 16 6 6 6 11 5 5 5 4 Singapore 116 67 67 68 108 73 70 65 35 21 22 21

South Korea 147 74 76 78 123 81 73 68 39 21 21 21

Sri Lanka 16 6 6 7 12 5 5 5 4 1 1 2

Taiwan 102 55 55 57 84 56 49 47 29 16 16 16

Thailand 33 21 20 19 25 18 16 15 9 5 6 5

Vietnam 51 39 36 36 41 32 29 26 13 10 9 9 The data above is derived from trade surveys.

The data indicates that the cost savings from economies of scale are somewhat variable. This is

undoubtedly due to the fact that the practice of the opening of multiple outlets is not consistent

because the companies undertaking these enterprises are very variable in their nature and

organisation.

It is the case that the major companies do enjoy significant economies of scale, but these are based

on multiples of several hundred locations. Furthermore, whereas the brand owned outlets may enjoy

such economies of scale the brand owner may not always pass on the entire volume saving to any

franchisee. Thus the unit cost of shop fittings and furnishings for a 3 store franchisee may only be

reduced fractionally if that franchisee were to open 5 stores.

There are some cost savings evident in respect of the shop fitting costs where more than one store is

involved, and also in the budget for ‘cash-in-hand’; however the cost savings for the other

components are not significant and will depend on the negotiation ability of the entrepreneur more

than on any actual reductions for volume.


107

Cash Flow, Profit & Loss, Balance Sheet, Project Financial Analysis

The Toolkit contains the following spreadsheets to enable users to produce:-

Start-up financial data is shown above and this forms both the Fixed Capital and Working Capital for

the start-up.

The format of this balance sheet is based on U.S. accounting standards.

See: http://www.datagroup.org/PureData/Base_PureData/Ch_Chapters/Ch_FIN_DEFI.htm

12 Months Cash Flow Analysis

http://www.datagroup.org/BASE_FOLDERS/xls/CASH_FLOW.xls

Fr = Forecast : Ac = Actual Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac

'000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000

1 Revenues 0

2 Orders 0

3 TOTAL SALES 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

RECEIPTS

4 Sales receipts

5 Sales debtors

6 Loans / Grants received

7 Miscellaneous income

8 CASH ACCOUNT TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

9 Capital

10 Asset & other disposals

11 TOTAL RECEIPTS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

PAYMENTS

12 Finished Materials Cost

13 Fuel Cost

14 Electricity Cost

15

Total Input Materials + Energy

Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

16 Payroll Costs

17 Wages

18 Directors' Remunerations

19 Employee Benefits

20 Employee Commissions

21

Total Employees

Remunerations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

22 Total Rental & Leasing Costs

23 Total Maintenance Costs

24 Services Purchased

25 Communications Costs

26 Miscellaneous Expenses

27 Sub Contractors

28

Total Miscellaneous

Operational Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

29 Total Sales Costs

30

Total Distribution and Handling

Costs

31 Total Advertising Costs

32 Total After-Sales Costs

33

Total Research and

Development Expenditure

34 Interest

35

Net Taxes & Duties (Value

Added, Import, etc.)

36

Tax (Income, Social Security,

etc.)

37 Total Payments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

38 Net Cash Flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

39 Opening Bank Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

40 Cash in Bank 0

Month 11 Month 12

CASH FLOW FORECASTMonth 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

http://www.datagroup.org/PureData/Base_PureData/Ch_Chapters/Ch_FIN_DEFI.htm



108

First 12 months and First 3 years Profit & loss Account

http://www.datagroup.org/BASE_FOLDERS/xls/PROFIT_LOSS.xls

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11Month 12 Year 1 Year 2 Year 3

'000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000

1 Domestic Revenues 0

2 Overseas Revenues 0

3 Total Revenues 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

4 Raw Materials Cost 0

5 Finished Materials Cost 0

6 Fuel Cost 0

7 Electricity Cost 0

8 Total Input Materials + Energy Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

9 Payroll Costs 0

10 Wages 0

11 Directors' Remunerations 0

12 Employee Benefits 0

13 Employee Commissions 0

14 Total Employees Remunerations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

15 Rental & Leasing: Structures 0

16 Rental & Leasing: Plant + Equipment 0

17 Total Rental & Leasing Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

18 Maintenance: Structures 0

19 Maintenance: Plant and Equipment 0

20 Total Maintenance Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

21 Services Purchased 0

22 Communications Costs 0

23 Miscellaneous Expenses 0

24 Sub Contractors 0

25 Total Miscellaneous Operational Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

26 Sales Personnel Variable & Commission Costs 0

27 Sales Expenses and Costs 0

28 Sales Materials Costs 0

29 Total Sales Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

30 Distribution Fixed Costs 0

31 Distribution Variable Costs 0

32 Warehousing Fixed Costs 0

33 Warehousing Variable Costs 0

34 Physical Handling Fixed Costs 0

35 Physical Handling Variable Costs 0

36 Physical Process Fixed Costs 0

37 Physical Process Variable Costs 0

38 Total Distribution and Handling Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

39 Mailing & Correspondence Costs 0

40 Media Advertising Costs 0

41 Advertising Materials & Print Costs 0

42 POS & Display Costs 0

43 Exhibition & Events Costs 0

44 Total Advertising Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

45 Product Returns & Rejection Costs 0

46 Product Installation & Re-Installation Costs 0

47 Product Breakdown & Post Installation Costs 0

48 Product Systems & Configuration Costs 0

49 Product Service & Maintenance Costs 0

50 Customer Problem Solving & Complaint Costs 0

51 Total After-Sales Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

52 Total Marketing Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

53 New Technology Expenditure 0

54 New Production Technology Expenditure 0

55 Total Research and Development Expenditure 0 0 0 0 0 0 0 0 0 0 0 0 0

56 Total Operational & Process Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

57 Operating Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

58 Depreciation: Structures 0

59 Depreciation: Plant and Equipment 0

60 Depreciation: Miscellaneous Items 0

61 Total Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

62 Trading Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

63 Interest Paid

64 Non-trading Income

65 Pre-tax Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

PROFIT & LOSS ACCOUNT

http://www.datagroup.org/BASE_FOLDERS/xls/PROFIT_LOSS.xls


109

1-7 Years Balance Sheet

http://www.datagroup.org/BASE_FOLDERS/xls/BALANCE_SHEET.xls

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

'000 '000 '000 '000 '000 '000 '000

1 Fixed Assets: Structures

2 Fixed Assets: Plant and Equipment

3 Fixed Assets: Miscellaneous Items

4 Fixed Assets 0 0 0 0 0 0 0

5 Capital Expenditure on Structures

6 Capital Expenditure on Plant and Equipment

7 Capital Expenditure on Vehicles

8 Cap. Expend. on Data Processing Equipment

9 Capital Expenditure on Miscellaneous Items

10 Total Capital Expenditure 0 0 0 0 0 0 0

11 Retirements: Structures

12 Retirements: Plant and Equipment

13 Retirements: Miscellaneous Items

14 Total Retirements 0 0 0 0 0 0 0

15 Total Fixed Assets 0 0 0 0 0 0 0

16 Finished Product Stocks

17 Work in Progress as Stocks

18 Materials as Stocks

19 Total Stocks / Inventory 0 0 0 0 0 0 0

20 Debtors

21 Miscellaneous Current Assets

22 Total Current Assets 0 0 0 0 0 0 0

23 Total Assets 0 0 0 0 0 0 0

24 Creditors

25 Short Term Loans

26 Miscellaneous Current Liabilities

27 Total Current Liabilities 0 0 0 0 0 0 0

28 Net Assets / Capital Employed 0 0 0 0 0 0 0

29 Long Term Loans

30 Miscellaneous Long Term Liabilities

31 Shareholders Funds 0 0 0 0 0 0 0

Persons Persons Persons Persons Persons Persons Persons

32 Workers

33 Total Employees

BALANCE SHEET

http://www.datagroup.org/BASE_FOLDERS/xls/BALANCE_SHEET.xls


110

10 Years Project Financial Analysis

http://www.datagroup.org/BASE_FOLDERS/xls/Project_Financial_Analysis.xls

Project Financial Analysis

INPUT SHEET: USER ENTERS ALL BOLD NUMBERS

INITIAL INVESTMENT CASHFLOW DETAILS DISCOUNT RATE

Initial Investment= $150,000 Revenues in year 1= $240,000 Approach(1:Direct;2:CAPM)= 2

Opportunity cost (if any)= $7,484 Var. Expenses as % of Rev= 50% 1. Discount rate = 10%

Lifetime of the investment 10 Fixed expenses in year 1= 0 2a. Beta 0.9

Residual Value at end of project= $100,000 Tax rate on net income= 40% b. Riskless rate= 8.00%

Deprec. method(1:St.line;2:DDB)= 2 If you do not have the breakdown of fixed and variable c. Market risk premium = 5.50%

Tax Credit (if any )= 10% expenses, input the entire expense as a % of revenues. d. Debt Ratio = 30.00%

Other invest.(non-depreciable)= 0 e. Cost of Borrowing = 9.00%

Discount rate used= 10.69%

WORKING CAPITAL

Initial Investment in Work. Cap= $15,000

Working Capital as % of Rev= 25%

Salvageable fraction at end= 100%

GROWTH RATES

1 2 3 4 5 6 7 8 9 10

Revenues Do not enter 10.00% 10.00% 10.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Fixed Expenses Do not enter 10.00% 10.00% 10.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Default: The fixed expense growth rate is set equal to the growth rate in revenues by default.

YEAR

0 1 2 3 4 5 6 7 8 9 10

INITIAL INVESTMENT

Investment $150,000

- Tax Credit $15,000

Net Investment $135,000

+ Working Cap $15,000

+ Opp. Cost $7,484

+ Other invest. $0

Initial Investment $157,484

RESIDUAL VALUE

Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $100,000

Working Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $87,846

OPERATING CASHFLOWS

Lifetime Index 1 1 1 1 1 1 1 1 1 1

Revenues $240,000 $264,000 $290,400 $319,440 $351,384 $351,384 $351,384 $351,384 $351,384 $351,384

-Var. Expenses $120,000 $132,000 $145,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692

- Fixed Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

EBITDA $120,000 $132,000 $145,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692

- Depreciation $30,000 $0 ($4,000) $0 $0 $0 $0 $0 $0 $0

EBIT $90,000 $132,000 $149,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692

-Tax $36,000 $52,800 $59,680 $63,888 $70,277 $70,277 $70,277 $70,277 $70,277 $70,277

EBIT(1-t) $54,000 $79,200 $89,520 $95,832 $105,415 $105,415 $105,415 $105,415 $105,415 $105,415

+ Depreciation $30,000 $0 ($4,000) $0 $0 $0 $0 $0 $0 $0

- ∂ Work. Cap $45,000 $51,000 ($38,400) $7,260 $7,986 $0 $0 $0 $0 $0

NATCF ($157,484) $39,000 $28,200 $123,920 $88,572 $97,429 $105,415 $105,415 $105,415 $105,415 $105,415

Discount Factor 1 1.10685 1.225116923 1.356020666 1.500911474 1.661283865 1.838792046 2.035266976 2.252735252 2.493440014 2.759864079

Discounted CF ($157,484) $35,235 $23,018 $91,385 $59,012 $58,647 $57,329 $51,794 $46,794 $42,277 $106,259

Investment Measures

NPV = $414,267

IRR = 42.43%

ROC = 75.60%

BOOK VALUE & DEPRECIATION

Book Value (beginning) $150,000 $120,000 $120,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000

Depreciation $30,000 $0 ($4,000) $0 $0 $0 $0 $0 $0 $0

BV(ending) $150,000 $120,000 $120,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000

http://www.datagroup.org/BASE_FOLDERS/xls/Project_Financial_Analysis.xls


111

SWOT Analysis

SWOT analysis by type of Market Entry

Entry via Own Retail Stores

Strength Weaknesses

Control of Brand

Control of Costs

Control of Profitability

Difficult Learning Curve

High Direct Investment Costs

High Risk of Failure

Opportunities Threats

Direct Contact with Customer Base

Ability to Adapt Products

Ability to Directly Influence Investment Decisions

Inexperience with local conditions

Local competitors

Potential fragility of local management

Entry via Domestic Retail Joint Venture

Strength Weaknesses

Partner’s knowledge of the country

Reduced Direct Investment Costs

Reduced Risk of Failure

Difficult in Finding Partner

Loss of Cost Controls

Reduced Margins & Profit Potential


Joint Development of Customer Base

Ability to Adapt Products


Partner’s business policies

Market Power of major competitors

Potential fragility of partnership



112

Entry via National Franchise Licensee

Strength Weaknesses

Licensee’s knowledge of the country

Reduced Direct Costs

Reduced Risk of Direct Losses

Difficult in finding suitable Licensee

Loss of Geographic Controls

Reduced Margins & Profits


Effective Development of Franchisees

Potential to achieve better market penetration

Ability to Extend Brands and Products

Competitors’ business policies

Market Power of major competitors

Potential fragility of Licensee

Entry via Intensive Individual Franchising

Strength Weaknesses

Control of Brand



Difficult Marketing process

Difficult in finding suitable Franchisees

High Risk of Failure of Franchisees


Better Contact with Customer Base

Ability to Extend Brands and Products


Franchisees targeted by competitor

Local brand competition

Potential fragility of Franchisees



113

Entry via Exclusive National Distributor

Strength Weaknesses

Distributor’s knowledge of the garment trade



Difficult in finding suitable Distributor




Ability to reach smaller and more remote retailers

Potential to achieve better market penetration

Ability to use Distributor’s local expertise


Possible loss of Brand Equity

Potential fragility of Distributor

Entry via Intensive National Distribution / Wholesaling

Strength Weaknesses

Distributors’ knowledge of the garment trade



Difficult in controlling Distributors




Ability to reach smaller and more remote retailers

Potential to achieve better geographic coverage

Ability to use Distributors’ local knowledge


Loss of Brand Equity

Potential fragility of Distributors



114

Competitive Analysis

Indonesia Representative Brands



115

Singapore Representative Brands



116

Vietnam Representative Brands



117

Market Penetration Prospects

Advancing into the target markets

The data above is derived from country surveys.

The variability of the political, economic and consumer environment in the Asia-Pacific regions means that the market potential of the Asia-Pacific region is highly variable and often uncertain. Dynamic markets like China and India often suffer from infrastructure and regulatory problems which tend to dull that vitality for overseas investors. The more liberal economies like Australia, Singapore and Hong Kong suffer from market saturation and aggressive competition. The market penetration prospects for women’s fashion are complex in every Asia-Pacific market.

Asian women’s fashion producers have found extreme difficulty in competing with European and American brands, this is not a question of fashion design or clothes quality, it is simply the fact that the women’s fashion industry is entrenched in Europe and the U.S.A. To succeed in fashion many Asian designers, like Vivienne Tam and Jimmy Choo, have moved to the U.S.A. or Europe.

Before one can discuss these potential for advancing into these Asia-Pacific markets one needs to

consider some basic concepts.

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118

Brand Concept A brand is defined as: “A name, term, sign, symbol, or design, or combination of them, intended to

identify the goods and services of one seller or group sellers and to differentiate them from those of

competitors.”

Branding thus is a means to distinguish one product from another and these differences may be

functional, rational, or tangible and fundamentally related to product performance of the brand.

In the Asia-Pacific region a ‘Brand’ is frequently no more than a European sounding name on a copy

of some European design. This use of facsimiles by Asia-Pacific producers has shown the limitations

of their business models.

It is necessary to distinguish a Brand from a Label. Labels or Own-Brand Labels tend to be generic

or standard products which simply bear the label or identification of a supermarket or some other

retailer. In general labels do not have the same status as brands in the mind of consumers, albeit the

quality and designs may have little differentiation; however consumers expect labels to have lower

price as than brands.

Brand Equity

Brand equity is intangible added value endowed to products and services. This value may be

reflected in how consumers think, feel, and act with respect to the brand, as well as the prices and

price premiums demanded by a brand, market share, and ultimately the profitability that the brand

commands for the firm. Brand equity is an important intangible asset that has image and financial

value to the firm. In the Asia-Pacific region there is no extended history of brand image creation and it

is for this reason that Asia-Pacific companies have to be particularly attentive to the enhancement the

brand equity of their products.


119

Customer Based Brand Equity Customer based brand equity can be defined as the differential effect that brand knowledge has on

the consumer response to the marketing of that brand. Positive customer based brand equity is when

consumer react more favourably towards a branded product than to competitive products. Asia-Pacific

brands can use the attitudes and perceptions of the customer base to increase customer based brand

equity. These perceptions may be, for example, the tendency for older demographics to be more

conservative or chauvinistic.

Brand Knowledge Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so forth, that

becomes associated with the brand. In particular, brands must create strong, favourable, and unique

brand associations with the target customer base. Brand knowledge is low in many Asia-Pacific

markets and this presents opportunities to new brands entering those markets.

Substantial Brand Knowledge & Awareness – All Brands

Market % Social Group Awareness % Age Group Awareness

AB C1 C2 DE < 19 19-24 25-34 35-44 45-54 55-64 65+

% % % % % % % % % % %

Australia 85 70 58 42 60 49 60 54 45 36 24

Bangladesh 39 36 26 21 27 22 27 24 18 14 11

Cambodia 33 30 25 18 26 19 26 23 17 14 11

China 37 34 28 20 33 21 33 23 22 15 13

Hong Kong 61 57 53 38 54 35 54 38 36 25 19

India 40 37 30 22 31 20 31 22 21 16 12

Indonesia 43 40 29 24 30 25 30 27 20 18 12

Japan 78 72 60 39 55 45 62 49 36 29 24

Malaysia 44 41 38 28 39 29 35 28 26 21 15

New Zealand 76 70 58 47 67 49 60 54 40 32 27

Philippines 48 45 37 27 34 28 38 27 22 18 13

Singapore 55 57 47 34 43 32 43 35 32 23 19

South Korea 62 57 47 39 55 36 49 39 36 26 19

Sri Lanka 36 33 28 20 28 23 32 25 19 17 11

Taiwan 43 40 37 27 34 25 34 27 25 18 15

Thailand 40 41 30 25 35 26 31 28 21 16 12

Vietnam 34 36 30 21 27 20 27 24 20 16 11

Brand knowledge and awareness is assessed during Consumer Surveys when consumers were asked specific questions to test the strength of their awareness of named brands. The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.


120

Brand Equity Model Brand Equity can be seen as a group of five categories of the assets and liabilities of a brand that add

to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers.

In the Asia-Pacific region consumer in many markets are relatively unfamiliar with these brand assets

and therefore marketing strategies can be employed by companies to enforce these assets in the

mind of consumers.

These categories of brand assets are:

1. Brand loyalty

2. Brand awareness

3. Perceptions of quality

4. Brand associations

5. Proprietary assets, patents, trademarks, and distribution channel relationships.

In the Asia-Pacific region insufficient attention has been paid to these issues and this has generally

led to the lack of global competitiveness of Asian-Pacific brands.


121

Substantial Brand Loyalty – All Brands

Social Group Loyalty Age Group Brand Loyalty AB C1 C2 DE < 19 19-24 25-34 35-44 45-54 55-64 65+

% % % % % % % % % % %

Australia 17 14 11 8 12 9 12 10 8 7 4

Bangladesh 7 6 5 3 5 4 5 4 3 2 2

Cambodia 6 6 5 3 5 4 5 4 3 3 2

China 8 6 5 4 6 4 6 5 3 3 2

Hong Kong 12 12 9 7 10 7 10 7 6 5 3

India 10 9 9 6 8 6 9 7 5 5 3

Indonesia 11 12 10 7 9 7 9 7 6 5 4

Japan 31 25 24 17 24 16 24 19 14 13 9

Malaysia 15 14 11 8 10 7 11 9 7 5 4

New Zealand 22 23 19 14 20 13 20 14 12 9 8

The Philippines 8 8 6 5 6 5 6 6 4 3 3

Singapore 11 10 8 6 8 6 8 7 5 4 3

South Korea 12 12 9 7 9 7 11 8 7 5 3

Sri Lanka 10 11 8 6 9 7 9 7 5 5 3

Taiwan 12 12 11 7 11 7 11 8 6 5 4

Thailand 16 14 12 8 12 9 12 10 9 6 5

Vietnam 6 7 5 4 6 4 6 4 3 3 2

Brand loyalty is assessed during Consumer Surveys when consumers were asked specifically for the

brands they purchased and then specifically if they would purchase the same brand(s) again. The

data above is derived from statistically accurate social / income group, and full age spectrum,

surveys.


122

Substantial Brand Quality –v Price Perceptions – All Brands

Social Group Age Group Brand Quality -v- Price AB C1 C2 DE < 19 19-24 25-34 35-44 45-54 55-64 65+

% % % % % % % % % % %

Australia 31 29 27 17 28 20 25 20 18 13 10

Bangladesh 27 25 21 15 24 18 24 17 14 13 8

Cambodia 26 24 20 14 18 15 20 14 13 11 8

China 35 29 27 17 24 18 27 19 18 14 9

Hong Kong 31 25 24 15 21 18 21 19 16 13 9

India 24 22 18 13 16 12 16 15 11 9 6

Indonesia 37 34 28 23 29 24 29 26 21 17 13

Japan 49 45 37 27 34 28 38 27 25 18 15

Malaysia 35 37 27 20 31 20 31 22 18 16 11

New Zealand 54 45 42 27 43 28 38 30 28 20 17

Philippines 35 33 27 19 31 23 31 22 18 16 12

Singapore 32 29 24 18 25 18 22 18 15 12 10

South Korea 32 34 28 20 25 19 29 23 19 13 10

Sri Lanka 29 27 22 16 25 19 23 20 17 12 9

Taiwan 40 33 30 19 28 23 31 25 21 16 12

Thailand 28 29 24 17 25 16 22 17 16 13 8

Vietnam 27 22 18 13 19 15 19 17 12 11 7

Perceptions of Brand Quality is assessed during Consumer Surveys when consumers were asked

specifically if they believed that the brands they purchased were of a better product quality than other

or cheaper brands and if in general they believed that expensive brands were of a better product

quality. The data above is derived from statistically accurate social / income group, and full age

spectrum, surveys.


123

Brand Knowledge Components

Price

Brand Recall Packaging

Brand

Awareness

Brand

Recognition

User

imagery

Brand

Knowledge

Non-

product

Related

Usage

Imagery

Brand Image Brand

Associations Attributes

Product

Related

Favourable

Associations

Benefits

Strength of

Associations

Attitudes

Uniqueness

of

Associations

Brand Resonance Components


124

Brand Resonance The brand resonance model also views brand building as an ascending, sequential series from bottom to top. The Brand Resonance model:

1. Brand Salience relates to how often and easily the brand is evoked under various purchase or consumption situations.

2. Brand Performance relates to how the product or service meets the customers’ functional needs.

3. Brand Imagery deals with the extrinsic properties of the product or service, including the ways in the brand attempts to meet the customers’ psychological or social needs.

4. Brand Judgments focus on the customers’ own personal opinions and evaluations.

5. Brand Feelings are the customers’ emotional responses and reactions with respect to the brand.

Brand resonance refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are “in sync” or empathetic with the brand. Fashion and its relation with Brand is said to relate to the three components of fashion:

1. Style 2. Acceptance, and 3. Styling

The forth element, Brand, is orientated by the above three components, but also it packages and encapsulates those components. From this development, together with social and economic implication, emerge two different concepts of fashion products:

The Global fashion product, and

The Market Segment fashion product. Producers in the Asia-Pacific region have to decide with which fashion concept they wish to align. They can seek to produce a Global brand or they can seek to produce a Market Segmented brand. What corporate history has suggested that companies wishing to engage both concepts often fall between both stools.


125


126

Qualitative Brand Research

It is necessary to assess the strength as well as understand the nature of the brand’s equity, relative

to competitive brands, and to monitor that over time.

Assessing the strength of brand equity can be done by finding Brand Awareness, Salience, Brand

Preference and Brand Users.

Qualitative Brand Identifiers

Sa

lie

nc

e

Pe

rfo

rma

nc

e

Ima

ge

ry

Ju

dg

me

nts

Fe

elin

gs

Sty

le

Acc

ep

tan

ce

Sty

lin

g

Att

rac

ted

to

Glo

ba

l

Bra

nd

s

Att

rac

ted

to

Lo

ca

l

Bra

nd

s

% % % % % % % % % %

Australia 85 76 66 66 76 85 76 66 66 76

Bangladesh 34 34 39 30 39 34 34 30 39 39

Cambodia 37 29 37 33 29 29 29 33 37 29

China 32 32 41 41 37 41 32 32 41 41

Hong Kong 69 53 61 61 69 69 53 69 69 53

India 31 31 31 31 35 31 35 35 35 35

Indonesia 33 33 33 38 33 43 38 43 33 43

Japan 78 61 61 69 69 61 78 78 69 78

Malaysia 50 39 44 50 39 44 44 39 39 44

New Zealand 76 66 85 85 66 66 76 76 85 66

The Philippines 43 43 37 37 37 43 37 37 43 48

Singapore 48 62 62 48 48 55 48 62 62 55

South Korea 62 62 54 54 54 62 54 70 54 70

Sri Lanka 41 41 41 36 41 41 31 31 41 36

Taiwan 43 37 43 37 48 37 48 48 37 48

Thailand 35 45 45 40 40 40 35 35 35 35

Vietnam 30 30 39 30 34 39 39 39 39 30

Brand Resonance is assessed during Consumer Surveys when consumers were asked specific psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.

Brand Awareness according reflects the extent to which people can either remember or

recognize a brand. When people think about brands in a product category, those come to

mind represent recall brand awareness; they are recalled based only upon a category cue. If

someone is shown a list of brand names or pictures of packages, those that can be identified

represents recognition brand awareness.


127

Brand Salience depends upon awareness, but reflects the relative strength of that awareness

in relation to the target market’s awareness of other brands in the category. This relationship

will be reflected in the relative relationship between what is known as “top -of- mind”

awareness and all the other brands in the category of which someone is aware.

Brand Preference, like brand salience, can be an indicator of the strength of brand equity.

Brands that are preferred are likely to enjoy greater equity than those that are not. Preference

for a niche brand may be high in its market segment, but relatively low in the global market as

a whole.

Brand Users or category understanding is one of the primary functions of quantitative

research and specifically relates to Users of a particular brand vs. users of competitive

brands. Based upon this, one is able to “profile” various user segments.

Marketing communication applied to fashion products The market for fashion products in developed countries is a highly competitive market whose main

characteristics is the similar positioning of a large number of competitive brands and, in this respect,

the brand’s image developed by marketing communications can influence the adoption process of the

products. In the Asia-Pacific region, especially in the less developed countries, there is not the same

level of competition and this represents an opportunity for new brand entries.

The marketing stimuli used to influence the purchase decisions, must transmit a coherent message in

all advertising and communication activities. The co-ordination of this process must consider such

aspects as the brand awareness and the brand image, as determined by the nature of the consumers’

perception.

The image is a mental representation of the brand and the product’s attributes and benefits. It is a

multi-dimensional phenomenon that depends on the consumer’s perception of those attributes and

benefits. In fashion products, both mental representation and its perception are built in a continuous

way, and developed through the image of fashion transmitted by each seasonal collection and by all

activities of marketing communication.

The overall effect of fashion product branding depends on the integration of all the components of the

marketing communication plan, including visual merchandizing, with the product design. All these

three elements have an impact over the product adoption process and a similar final goal: to influence

the purchase option of fashion products through the satisfaction of a certain fashion image demand.

Whereas the European and US fashion retailers have very long experience of these issues, the new

Asia-Pacific brands have a very steep learning curve.


128

The Brand Image in the marketing communication process

Brand managers need to develop systems to regularly reinforce the brands’ image in relation to the

overall brand identity and consumer awareness of the importance criteria for that fashion product

brand. Brand management is less of a developed art in the Asia-Pacific region than it is in the US or

Europe.

The brand may benefit from an enhanced reputation and closer proximity to its buyers if the design of

each collection takes into consideration the following aspects:

In order to keep or develop the value of the symbolic message of the brand, the brands’

image management should be focused on a small number of distinct styles;

The consumer buys or uses fashion products of different types and styles;

An effective fashion image developed through the seasonal collections, allows the brand to

achieve image coherence and to capitalize on it in the market by building a global presence.

The adoption process of fashion brands reflects the significant impact of the popular and

cultural image of fashion that a brand transmits as well as its inherent identification potential

(social, cultural and economic).

Recognizing this, consumers search for fashions that approximates with their own aspirations, needs

and wants; rather than that of the stereotypical people who may have appeared in advertisements

and the media. This is especially the case in markets which have traditionally been less exposed to

global culture. Whereas the upper middle classes in the developing Asia-Pacific countries are

increasingly exposed to global stereotypes, nonetheless the traditional aspects of these markets

frequently outweigh the global imagery.

The Store Image in marketing communication process

The store image development is established through its geographical location, the retail space which

it occupies and its external design. In addition it is defined by the products that it offers and their

representation in the internal space of the store. The combination of these factors defines the store

atmosphere, or look, or personality. This should at all times conform to, and confirm, the target

customer base’s expectations of the store.

In many Asia-Pacific countries the store location and the store space represents a major contributing

factor to mitigate the relatively high cost of global brands. The consumer is not only buying the brand,

but is also buying into the ‘shopping experience’ in a way that is more profound than experienced in

Europe or the USA.


129

Consumer confidence and consumer markets in Asia-Pacific

Consumer Confidence Index

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Australia 100 80 93 100 108 120 90 55 55 45 50

Bangladesh 100 72 93 90 108 108 90 55 55 50 45

Cambodia 100 88 85 90 108 108 81 50 45 50 50

China 100 88 76 110 132 108 81 50 50 50 45

Hong Kong 100 80 76 110 108 132 90 50 55 50 55

India 100 88 85 110 132 120 90 55 50 50 55

Indonesia 100 72 93 110 132 132 81 50 45 55 50

Japan 100 80 85 100 120 132 81 55 55 50 45

Malaysia 100 80 85 90 120 120 81 45 45 55 55

New Zealand 100 80 85 110 120 120 81 45 45 55 50

The Philippines 100 88 93 90 108 108 99 50 45 55 55

Singapore 100 80 85 110 132 108 90 45 50 55 45

South Korea 100 80 76 100 108 132 81 55 45 45 55

Sri Lanka 100 88 85 90 108 120 99 45 50 45 55

Taiwan 100 72 93 110 132 120 99 45 50 50 50

Thailand 100 80 76 90 132 120 81 55 45 50 55

Vietnam 100 80 93 100 132 108 99 50 45 55 55

Consumer confidence is assessed during Consumer Surveys when consumers were asked specific psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.

Consumer Confidence Consumer Confidence relates to Spending Attitudes in relation to the general Economic situation; the

definitive gauge of consumer sentiment around economic and social concerns across countries.

After periods of speculation and uncertainty around the economic conditions, at some stage

consumers reach a state of resignation to the economic realities and the majority will then usually

adopt rational spending levels for various product groups.

Consumer confidence worldwide often fluctuates wildly as relatively uninformed consumers attempt to

make sense of media coverage of economic circumstances, the propaganda of their political masters,

and their own empirical experience of the situation.

In terms of the consumption of consumer products, the net effect is the changes in the propensity for

consumers to save rather than spend.

In the Asia-Pacific region, as in the rest of the world, consumer confidence has fallen to its lowest

level in many years. The Asia-Pacific region, and more particularly China and India are not forecast to

survive the current economic recession any better than the USA or Europe.


130

Over 50% of global consumers’ state they put their spare cash into savings; this is an increase of over

6% since 2010, and up 12% since 2008. The world’s most determined savers have always been in

the Asia-Pacific, where an average of 61% of consumers chooses to save rather than spend.

Holidays and vacations continue to be a popular choice; with 26% of Asia-Pacific consumers planning

to spend on their annual holidays, by contrast only 24% of consumers currently choose to buy new

clothes on a regular basis. In the Asia-Pacific region the most confident consumers are in India and

Indonesia where over 40% of consumers intend to buy new clothes on a regular basis.

Asia-Pacific consumer markets have changed rapidly, and with strong growth in disposable incomes,

plus the development of modern urban lifestyles, Asia-Pacific consumers are becoming increasingly

sophisticated and knowledgeable about branded products. Advertising and the media allow

companies to communicate with consumers in many different ways and therefore brand propositions

are now a part of daily life.

Foreign brands remain relatively powerful in the Asia-Pacific region, especially in clothing and

personal care products; but increasingly brands have to be associated with value and suggest a clear

and evident Value Proposition. Asia-Pacific consumers are turning as suspicious and discriminating

as their US and European counterparts; and indeed the learning curve and product awareness

amongst Asia-Pacific consumers is evolving much more rapidly than it did with US and European

consumers in the past.

Asia-Pacific markets are difficult to forecast because of the variability of the numbers of people living

in reduced financial circumstances and the more rural aspects of population distribution. Literacy

rates are variable in many Asia-Pacific countries. Income is frequently less well distributed across the

whole population than in other regions. The market also tend to be highly regional for geographic or

infrastructure reasons. A mosaic of cultures and languages in some countries contribute to the

difficulties of companies seeking to establish homogeneous brand images.

Understanding buying pattern of consumers in the Asia-Pacific region is a challenging endeavour.

The Asia-Pacific consumers’ lifestyle and profile is evolving rapidly for a number of fundamental

reasons:

1. Population Age Distribution, especially the population below the age of 25. 2. The rise in the self-employed and financially self-sustaining segments of the working

population. 3. The rise of the AB, C1 and C2 segments of the social groups. 4. Levels of discretionary spending amongst the urban middle classes. 5. The increase in the number of higher income households. 6. The increased consumption of technology and convenience products. 7. The rise in the use of credit and payment cards and other financial instruments. 8. The availability and cost of credit. 9. The increasing shift from price consideration to design and quality. 10. The adoption of aesthetic values and awareness of the projection of a personal image. 11. The increasingly critical evaluation of the Value Proposition of products and the Price – Value

– Functionality considerations which are in the minds of consumers. 12. The acceptance of enjoyment of luxury items and an increased willingness to experiment with

fashion products. 13. The acceptable of product obsolescence and the dictates of what is, and what is not,

perceived as being fashionable.


131

By contrast there are factors which tend to differentiate, and often limit, many Asia-Pacific markets:

1. The relatively high portion of disposable income spent on Food and Housing. 2. The relative pricing of branded fashion products. 3. The effectiveness and physical distribution of retailers, especially in large countries with

limited infrastructure. 4. The pressure on the gross margins and therefore the profitability of the entire supply and

distribution chain. 5. The difficulty for large scale retail operations and multiples to realise a good level of

profitability. 6. The national shopping habits of consumers which sometime inhibit the impulse buying of

garments. 7. The influence of family and cultural imperatives on the younger consumer age groups whom

tend to represent the major segment of the branded fashion market. 8. Consumer attitudes and influences when shopping as a family group as opposed to shopping

individually or with peer group.

Consumer Attitudes and Perceptions which impact Clothing Brands

In most Asia-Pacific markets there are certain events, attitudes and preferences which impact on the purchase of branded garments.

1. Shopping habits and the method of garment shopping.

2. The role of matriarchal and patriarchal societies.

3. Special event purchases. The purchase of garments for cultural, family and special events is more important in the Asia-Pacific region then in many other regions.

4. The relative trust in local brands. There is a substantial degree of trust and confidence in local

brands.

5. The relative perception that foreign brands are of a higher quality than local brands is largely age based. After the age of 24 this perception of the superiority of foreign brands rapidly diminishes.

6. The relative effect of socio-economic groups and educational levels on brand perceptions.

7. The relative average spending during shopping trips. Younger demographics spend more per

trip than older demographics.

8. The relative average frequency of shopping trips. Younger demographics shop more frequently than older demographics. Up to 24 years of age the shopping frequency is likely to be once every 4 weeks, whereas this reduces after 25 years to once every 6 weeks, and reduces further as age increases.

9. The age group of consumers. Whereas the younger demographics believe that local brands can compete effectively with foreign brands they nonetheless feel that foreign brands offer other benefits.


132

10. The use of the garments:-

% Usage & Purpose of clothes purchases

< 19 & 19-24 Years old 25 + Years old

S

oc

ial

& F

am

ily

Wo

rk

Ev

ery

da

y

Ho

me

& C

as

ua

l

Sp

ec

ial

oc

ca

sio

n

So

cia

l &

Fa

mil

y

Wo

rk

Ev

ery

da

y

Ho

me

& C

as

ua

l

Sp

ec

ial

oc

ca

sio

n

% % % % % % % % % %

Australia 13 11 44 10 22 19 14 17 21 29

Bangladesh 15 12 14 15 44 20 16 22 16 26

Cambodia 10 11 35 12 32 19 19 22 10 30

China 11 15 17 25 32 18 17 28 16 21

Hong Kong 10 15 39 10 26 20 18 27 12 23

India 12 12 13 16 47 19 14 20 16 31

Indonesia 13 12 23 18 34 16 19 29 14 22

Japan 12 12 36 15 25 17 19 25 14 25

Malaysia 11 14 14 23 38 19 12 25 22 22

New Zealand 12 11 41 12 24 20 10 30 20 20

The Philippines 13 13 30 10 34 15 18 26 19 22

Singapore 12 12 42 13 21 20 18 28 13 21

South Korea 8 12 29 24 27 19 10 33 12 26

Sri Lanka 13 14 11 14 48 20 18 10 13 39

Taiwan 11 14 26 16 33 19 17 26 12 26

Thailand 10 14 32 14 30 15 15 29 17 24

Vietnam 12 10 29 19 30 20 12 30 18 20

Usage & Purpose of clothes purchases is assessed during Consumer Surveys when consumers were asked specific psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.

11. Perception of Designer –v- Standard / High Street Brands. In Asia-Pacific markets there are growing perceptions that Designer Brands do not offer any particular quality benefit over Standard / High Street Brands.

12. There is a general dislike of Internet shopping in Asia-Pacific countries.

13. In urban areas, amongst the middle classes, 40% of consumers were aware of fashion brands from newspapers, 25% of consumers were aware of fashion brands from magazines, and 23% of consumers were aware of fashion brands from Television and Films.


133

14. Celebrity endorsement

Celebrity endorsements in the Asia-Pacific region countries are usually limited to local brands or certain types of international brands, namely, sportswear, denim, and youth casual wear.

Celebrity endorsement

Celebrity endorsement (Actors / Sports stars / Models / Movies Stars) importance is assessed

during Consumer Surveys when consumers were asked specific psychometric questions which

tested and cross-checked the issues mentioned here. The data above is derived from statistically

accurate social / income group, and full age spectrum, surveys.


134

Relative Ranking Criteria and Consumer Habits for Clothing Purchase

Pri

ce

& V

alu

e

Qu

ali

ty

Des

ign

Bra

nd

na

me

Co

nv

en

ien

ce

Imp

uls

e B

uy

ing

Pla

nn

ed

Bu

yin

g

Lo

ca

l B

ran

ds

Inte

rnati

on

al

Bra

nd

s

% % % % % % % % %

Australia 63 60 38 44 22 22 52 49 28

Bangladesh 78 48 30 39 18 18 65 61 19

Cambodia 82 39 37 29 17 13 68 73 18

China 78 42 30 30 14 18 65 70 19

Hong Kong 70 60 44 44 15 18 57 62 28

India 84 45 33 37 13 13 69 65 18

Indonesia 90 42 26 30 14 14 83 70 22

Japan 63 60 38 38 17 17 58 63 24

Malaysia 90 42 30 34 14 15 74 70 17

New Zealand 63 67 49 38 22 17 58 56 31

The Philippines 78 54 39 39 18 14 65 70 22

Singapore 70 60 44 34 18 18 65 70 25

South Korea 66 64 36 47 19 21 54 58 23

Sri Lanka 84 39 33 28 15 16 69 74 21

Taiwan 74 57 32 37 17 17 61 74 20

Thailand 84 39 37 28 15 15 69 84 23

Vietnam 96 39 25 32 13 11 80 75 15

Purchasing Criteria and Habits are assessed during Consumer Surveys when consumers were asked specific psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.

Brand Selection

Consumers who purchase fashion products from Exclusive brand outlets tend to visit the store specifically because they are attracted to that brand, not for reasons of brand comparison. In multi-brand outlets the majority of women select and purchase a particular brand because of the ‘shopping experience’. Overall preference for one brand over another is based on the ‘shopping experience’ generated by the chosen brand.


135

Price over Brand Loyalty amongst Young Buyers

When shopping, price is the main consideration for young buyers and this extends to other

generations. Young buyers are not as brand loyal as their parents, with generally less than 50%

indicating brand loyalty as a major factor. There is an opportunity for more in-store marketing and

promotions as 25-40% of young buyers indicating that in-store promotions do drive purchases. In

addition a significant percentage of younger buyers are influenced by store merchandising and

displays.

Purchase Drivers for Younger Buyers : < 19 and 19-24 Years Old

Pri

ce

Bra

nd

Lo

ya

lty

Ad

ve

rtis

ing

off

ers

Lo

ya

lty

Ca

rd

Pre

se

nts

In S

tore

Pro

mo

tio

ns

Pre

ss

Ad

ve

rtis

ing

Sto

re M

erc

han

dis

ing

Pro

du

ct

Pa

cka

gin

g

Pro

mo

tio

na

l S

taff

Market

Australia 80 52 45 38 36 31 36 32 22 10

Bangladesh 70 36 41 35 25 28 25 25 14 8

Cambodia 60 39 44 29 27 30 23 21 17 7

China 64 41 36 30 28 32 28 22 18 9

Hong Kong 72 46 40 39 32 32 28 28 18 10

India 66 39 43 28 30 23 23 27 13 7

Indonesia 61 40 40 26 22 25 22 19 12 7

Japan 72 52 45 49 31 40 40 28 20 12

Malaysia 50 31 36 30 22 25 22 19 12 8

New Zealand 72 52 58 38 31 40 40 28 17 12

The Philippines 64 41 36 30 25 28 25 22 18 8

Singapore 72 52 52 34 36 32 36 28 20 10

South Korea 68 49 43 47 38 38 38 30 16 11

Sri Lanka 54 34 43 28 27 27 27 24 16 10

Taiwan 68 49 38 32 26 34 30 30 19 11

Thailand 60 34 43 37 27 30 27 21 16 10

Vietnam 57 38 38 28 20 20 23 20 13 6

Purchase Drivers are assessed during Consumer Surveys when consumers were asked specific psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.


136

Domestic Brands -v- Foreign Brands

Brand Perceptions are assessed during Consumer Surveys when consumers were asked specific psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social / income group, and full age spectrum, surveys.

< 19 & 19-24 Years old

25 + Years old

Tru

st

Do

me

sti

c B

ran

ds

Str

on

gly

Do

No

t T

rus

t D

om

es

tic

Bra

nd

s

Fo

reig

n B

ran

ds

are

of

a H

igh

er

Qu

ali

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han

Do

me

sti

c B

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Fo

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n B

ran

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are

No

t o

f a

Hig

he

r Q

ua

lity

tha

n D

om

es

tic B

ran

ds

Dep

en

ds

on

th

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ran

d

Tru

st

Do

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ran

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Str

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gly

Do

No

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rus

t D

om

es

tic

Bra

nd

s S

tro

ng

ly

Fo

reig

n B

ran

ds

are

of

a H

igh

er

Qu

ali

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han

Do

me

sti

c B

ran

ds

Fo

reig

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ran

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are

No

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Hig

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r Q

ua

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tha

n D

om

es

tic B

ran

ds

Dep

en

ds

on

th

e B

ran

d

% % % % %

% % % % %

Australia 68 32 43 34 23 79 21 36 39 25

Bangladesh 58 42 50 30 20 75 25 32 32 36

Cambodia 57 43 44 37 19 75 25 37 40 23

China 73 27 44 35 21 84 16 39 33 28

Hong Kong 70 30 47 34 19 84 16 37 38 25

India 70 30 47 34 19 83 17 39 32 29

Indonesia 64 36 46 38 16 80 20 38 32 30

Japan 73 27 41 30 29 81 19 31 35 34

Malaysia 70 30 42 34 24 82 18 33 34 33

New Zealand 69 31 47 32 21 80 20 37 31 32

The Philippines 61 39 45 31 24 83 17 36 38 26

Singapore 73 27 45 40 15 81 19 34 40 26

South Korea 71 29 42 38 20 75 25 37 34 29

Sri Lanka 68 32 43 30 27 82 18 36 36 28

Taiwan 70 30 48 38 14 76 24 39 39 22

Thailand 66 34 41 39 20 83 17 39 35 26

Vietnam 67 33 42 39 19 85 15 37 32 31


137

Asia-Pacific Markets Conclusion In the Asia-Pacific region the branding of garments and accessories are in the growth phase. Consumers have started identifying and preferring branded products over unbranded products due to the growth of the retail sector and the presence of branded offerings. Asia-Pacific consumer value quality and price rather than brand images; this means there are very few brand loyal customers. Thus proper category management and retail presence can improve branding and brand loyalty in the Asia-Pacific region.

Fashion market potential in the Asia-Pacific region

The Asia-Pacific Women’s Branded Fashion market in the newly developing markets (for example China, India, Indonesia, et al) is largely an upper middle class phenomenon. The vast majority of the population of these countries cannot afford Branded Fashion. Thus whereas there are some Global Brands in these countries, these serve a very few of the better off women.

It is the case that Asia-Pacific designers and entrepreneurs have often found success in the USA and

Europe, and one wonders what factors have taken them abroad to seek success. What is clear that in

the Asia-Pacific region to succeed one needs to aspire not just to a good local brand, but to develop

global brands which can take on the American and European brands head to head. To succeed Asia-

Pacific Fashion brands and designers will need to think laterally.


138

What do consumers want in a branded product?

In Asia-Pacific countries there is rapidly growing youth population with a high level of education and exposure to global imagery. This demographic is particularly susceptible to brand propositions. Thus it is interesting to analyse the consumer needs of this demographic, as this will be the prime target for any new brand.

What Do Consumers Want?

This is the perennial question with no ready answers. For many people the answer may simply be: to

be fashionable on a budget. That mean a convenient and comfortable location to spend their money

where they believe they will get value.

Why do retail brands attract consumers?

Which brand attributes were the most important to the customers?

The survey data shows the most important factors in determining store preference, i.e. which retail

brand consumers patronise when shopping). As can be seen the main factor was price, followed by

clothes design (i.e. fashion and trends). What this means for the store is clear product displays,

pricing, and merchandising; together with a sufficient inventory.

Whilst is may be considered that media advertisements would influence consumers, in fact this was

not the case as some retailers use substantially less media advertising than others. What was evident

was that in-store promotions frequently play an important role. Survey data suggests the following:-

The data above is derived from retail store surveys.


139

What can Korean brands and designers do to counter the established brands?

There is little that any Asia-Pacific brands can do to counter the European and US brands. The

reasons for this the brand equity of the established brands and the fact that these brands are so

entrenched in the global market that it would be both expensive and ultimately counter-productive for

any newcomer to attempt to overturn the apple cart.

To counter the global brands a newcomer will have to succeed in each of the following areas:-

Product Price

Product Design

Store Atmosphere

Store Location

Store Service

Product Promotions

The global players have spent decades working on these areas, and many of the global players have

had only marginal success. The marginality of their success is measured in their Return on

Investment, which has been only moderate in the past, and had indeed shown decline since 2008.

For Asia-Pacific brands to succeed they will need to re-think the traditional fashion brand retail model.

How can Korean brands and designers do better than the established brands?

It is not possible to speculate how designers may produce better designs. The experience is that

many Asia-Pacific designers are greatly influenced by US and European design concepts. Of course

the only reason that such designers are successful is because there is consumer demand for their

designs; ergo they have to produce US and European styles in order to succeed. The global brand

managers use designers to create the consumers’ perception of what is, and what is not, fashionable.

In this respect the consumer is very malleable and is sufficiently neurotic to believe that this year

‘green is the new black’ or ‘brown is the new chique’. One can never under-estimate the style sense

of the consumer, or over-estimate the ability to ability brand managers have in manipulating a gullible

customer base.

The question then is what Asia-Pacific brands can do to be better than the global brands. Once again

one returns to the consumer.

Product Price. The major high street fashion brands have firm control of product pricing

levels.

Product Design. The major high street fashion brands decide themselves on what is

fashionable at any particular moment in time.

Store Location. The major high street fashion brands have the market power to command the

prime locations.

Product Promotions. The major high street fashion brands have the market power to beat any

competitor in promotional activity.


140

Store Atmosphere. New brands can compete here by catering to specific consumer

demographic and market segments.

Store Service. New brands can compete here by catering to specific consumer demographic

and market segments.

Novel marketing methods to distinguish oneself from the competition

Brands and Designers in the same industry generally use similar marketing methods to reach

customers. How can Korean Women’s Fashion brands and designers get creative and use

unconventional marketing methods to distinguish their business from the competition?

This is specifically an area where new brands can start to compete with the tired marketing tactics

used by the major high street fashion brands. There are a number of ways in which new entrants to

the market can change the interface between brand and buyer; and these will inevitable depend on

the segmentation of the customer base to achieve a more friendly interaction with the customer.

The most cost-effective way of improving interaction with customers is to use new technology to build

databases on customers, to better interact with customer in-store, and as a means of communications

with customer to encourage them to visit stores.

RFID chips in Store Loyalty Cards

Most women carry a purse full of store loyalty cards, and these may or may not encourage the

consumer to return to a particular store. However the inclusion if a RFID chip in the card will allow

store to use a range of customer interface procedures when customer return to the store.

For example, an RFID chip will allow the customer to be identified as she enters the store and then a

series of screen displays using an interactive Avatar could engage the customer in conversation using

voice recognition software.

This conversation would use that customer previous purchases and choices as point of conversation.

Screens would be placed at various locations in the store and the dialogue could continue and also

direct the customer to particular products and promotional offers.

“Hallo Jane, welcome back. If you would prefer me not to help you please say -Yes- now.”

“OK. Can I show you some of our special offers in your size?”

“How did you like the skirt you bought the last time you were here?”

When two customers are within the same range of the same Avatar, the Avatar could introduce one

customer to the other.

“Jane, can I introduce you to Betty? She has been a customer here for over two years.”

“Ladies, did you know that we have a special offer this week on jeans. You will find them in

the next section beside the changing cubicles.”


141

The use of automated systems based on customer identification would potentially enhance the

‘shopping experience’ for the buyer and at the same time allow the collection of valuable market

intelligence.

Special Occasions

Small brands are more flexible in their operations and they are more able to interact with specific

customer segments. By matching specific customer segments with specific product offering and

special promotions a retailer can attract customers in a much more effective way than any major high

street fashion retailer.

By building up consumer contact lists, categorised by demographic and social groupings, products

could be promoted to these customer segments through special occasions (during weekends or

evenings) where specific product ranges could be presented. The product ranges could then be

maintained through online marketing.

Spontaneous Eventing

The most profitable and dynamic customer segment tends to be the under 24 year group. This

demographic could be attracted to spontaneous events held in the retail premises or in local clubs or

other locations. These events would combine a social occasion with the promotion of particular

product offerings. Such events would be announced by mobile telephone messaging at the last

moment and would be intended to divert young people from their usual social haunts to the event.

One would build into the system ‘exclusive’ events for high spending customers and these would

involve musicians, local celebrities or special guests. There would be amongst the general customer

base a desire for inclusion into this ‘inner circle’.

There are many similar ways in which a small brand can outmanoeuvre the larger, more bureaucratic,

brands.

Unique Brand Offerings

“A unique brand offering attracts more attention and results in more sales” is a reasonable

assumption; however there is nothing unique in the fashion industry.

One might imagine that the use of novel textiles or build-in electronics may be possible; however the

fact is that if there was any viable possibility for such innovations they would already have been

seized upon by the major brands.

Gimmicks and gadgets tend to devalue the long-term image of brands and they should be avoided.


142

New and Untapped Market Demand

In the Asia-Pacific region the new and untapped markets tend to be in the less affluent and rural parts

of the developing countries. Unfortunately this population has little disposable income to spend on

branded fashion garments.

There is no new or untapped market demand available to overseas brands in Asia-Pacific region.

What local and segmented demand for garments which exists in each country is catered for by local

entrepreneurs offering discount products. Each market has its own domestic brands which cater for

the middle price range garments. Overseas brands have high overheads and cannot compete in the

lower end of the market and are therefore limited to a relatively small part of the overall garments

market.

Niche Markets

There are niche markets, niche re-vitalisation and niche development; and there is always some

opportunities in each area.

Geographic Niches

Districts with limited competition often provide strong retail niches where it is very easy for shoppers

to find a retail brand locations isolated from competitors. Downtowns areas are often available for

strong niche locations. Niche locations can also provide cost advantages because retail space is

usually affordable and staff wage expectations are lower.

Customer Segment & Demographic Niches

The identification of customer segment niches requires local knowledge. The possibilities include:-

Ethnic demographics

Office workers

Older customers segments

Sports enthusiasts

Students

Tourists

Product or Service Niches

Product or service niches are usually concerned with the special needs or aspirations of particular

consumer groups. Some examples would be:-

Add-ons like jewellery products or cosmetics

Exclusives & Limited editions of garments

Factory outlets or value retailing

Garment customisation

Joint promotions with other retailers or service providers

Special garment sizes

Special Services like home visits and personal shoppers


143

Brand Superiority

Brands have to offer potential buyers as many benefits as possible; especially, product superiority,

product differentiation, or a very strong brand image or heritage.

New brands and newcomers are limited in the benefits they can offer. The democratisation of the

luxury brands and their general availability (if not financial accessibility) means that the bar has been

raised for all the middle ground players. Thus Product Superiority and Product Differentiation are now

perceived by consumer as being the preserve of the luxury brands. In general this also applies to

Brand Image and Brand Heritage.

Thus is it increasingly difficult for High Street Fashion brands to offer their customers anything other

than the things being sought by the average retail customer. Those brand benefits are generally

regarded as being:-

Product Price

Product Design

Store Atmosphere

Store Location

Store Service

Product Promotions

The High Street brands are thus limited to offering a lower product price, a better store atmosphere,

better store service, and a more convenient store location. The benefits of design and promotions are

transitory and very variable.

Building Heritage Brands

The cost of doing a good job in Brand Building and Design is not necessary any more than the cost of

producing mediocre brands and designs.

The building of a heritage brand always starts with a brand name which has a sufficient resonance to

be able to persuade consumers that it has sufficient weight to carry such a brand image.

For Asia-Pacific companies it will be necessary to buy an existing name and convert that into a brand

image. To be a heritage name it must have resonance in Europe and the USA and this means that

the name must be widely known in Europe and the USA.

Once a suitable name has been purchased then an Asia-Pacific company can use the normal brand

creation tools to build the name into a brand.


144

Brand Resonance

Building a strong brand uses a sequence of steps, in which each step is dependent on the success of the previous step such as. These are as follows:-

1. Brand identity. This needs to be specific and clear. 2. Brand meaning. What does the brand do for the consumer? 3. Brand responses. How do consumers perceive and react to the brand? 4. Brand relationships. What connections does the brand have and how does it connect with the

consumer?

The implementation of these steps, essential in the creation of the best brand identity, brand meaning, brand responses, and brand relationship, is a complicated and difficult process. The components of the process involve the following concepts:-

Brand Salience relates to aspects of the awareness of the brand, for example, how often and easily the brand is evoked under various situations or circumstances.

Brand Meaning is made up of two major categories of ‘brand associations’ that exist in customers’ minds related to performance and imagery, with a set of specific subcategories within each. These brand associations can be formed directly (from a customer’s own experiences and contact with the brand) or indirectly (through the depiction of the brand in advertising or by some other source of information, such as word of mouth). These associations serve as the basis for the positioning of the brand and its points-of-parity and points-of-difference. Creating strong, favourable, and unique associations and the desired points-of-parity and points-of-difference can be difficult for marketers, but essential in terms of building brand resonance. Strong brands typically have firmly established favourable and unique brand associations with consumers.

Brand Responses refers to how customers respond to the brand and all its marketing activity and other sources of information that is what customers think or feel about the brand. Brand responses can be distinguished according to brand judgments and brand feelings, that is, in terms of whether they arise from the “head” or from the “heart.”

Brand Judgments focus on customers’ personal opinions and evaluations with regard to the brand. Brand judgments involve how customers put together all the different performance and imagery associations of the brand to form different kinds of opinions.

Brand Feelings are customers’ emotional responses and reactions with respect to the brand. Brand feelings also relate to the feelings that are evoked by the marketing program for the brand or by other promotional means.

Brand Resonance refers to the nature of this relationship and the extent to which customers feel that they connect with a brand and feel “in synchronization” with it. With true brand resonance, customers have a high degree of loyalty marked by a close relationship with the brand such that customers actively seek means to interact with the brand and share their experiences with others.

The importance of the brand resonance model is in the checklist it provides for brand building. It provides a basis by which brands can assess their progress in their brand building efforts as well as a guide for marketing research initiatives. Brands must have a Duality. That Duality is the brand’s connection with the Consumer’s Head and Heart. One important point reinforced by the model is that a strong brand has such a duality. A strong brand appeals to both the head and the heart. Strong brands blend product performance and imagery to create a rich, varied, but complementary set of consumer responses to the brand.


145

Brand Persistence

Brand Persistence or Success is a basic matter of capturing a sufficient customer base or brand

following to sustain the brand over a period of time. Each year there are hundreds of brands

introduced to the market; only a limited number survive 3-5 years, and only a fraction survive for more

than 5 years. The lifecycle of a brand depends on the professionalism and determination of the brand

managers.

Capturing a customer base

Capturing a customer base requires a very efficient and co-ordinated marketing effort to address the

expectations of existing customers. Essentially this is a marketing task to offer the customer base a

greater number of relevant purchase opportunities as opposed to ineffective purchase opportunities,

and greater number of competitive product offers as opposed to undifferentiated product offers. The

target customer base needs to be assured that they will get the product and services they expect from

the brands they value the most.

a. Defining the target audience.

Who: Segment the target audience as precisely as possible

Where: The marketing mix has to be fined tuned to each segment

How: Audience management through multiple communications channels

Push: Prioritize and Filter product and promotional management tactics

Pull: Product Design, Buying Experience, Store Design, Point of Sale, Inventory management

b. Engaging the target audience

Value Proposition

Product Pricing

Product Design

Store Experience

c. Converting the target audience

Predatory Pricing

Tactical Marketing

Tactical Advertising

Tactical Offers & Promotions

d. Strategy

Strategic analysis of customer expectations

Strategic blueprint to meet the customer expectations

Strategic Business Plan

Strategic marketing objectives

e. Focus

Focus on the customer base segments which meet the profit objectives of the brand

Focus on realistic marketing goals

Focus on the medium and long term development of the brand

f. Monitor

Seek and automate customer base feedback

Formalise data collection and collation


146

Monitor customer attitude and perceptions

Automate the systems

g. Communicate

h. Create value

i. Database management and systems automation

Expand the customer base

In order to optimize the value of the customer base, brands are required to constantly be in a process

of re-attracting, re-engaging and re-converting their current customer base to leverage latent value.

Re-acquisition processes (acquiring them in another segment, acquiring them in a new channel,

broader share of wallet) drive cross-sell and up-sell.

It may be a basic concept that companies need to have single view of the customer across the

enterprise—the reality is that today, it is not enough. One needs a broader view. Not just across

one’s own systems but with supply partners and marketing partners. Offers need to be consistent

across channels and retail vehicles, even ones outside the brand’s usual sphere.

To drive cross-sell and up-sell one needs to understand customer characteristics and propensities—

insights to customer segments. Expectations may be high because of the brand’s pre-existing

relationship with them.

Once one has the marketing mix aligned with the ability to listen and respond to the customer base,

one then has to apply the right insights to create the best and most relevant product offerings.

Optimized engagement with the customer base and the combination of the right offer with the right

marketing provides consistency with one’s customers and this helps create an on-going dialogue

across channels.

One needs to respond in real time however the consumer come to the brand—whether at a point of

sale, entering the store, online, promotion, etc. Whether one’s primary metrics are RFM, Share of

Wallet or lifetime value, effective feedback can help one track and optimize performance on the

segment level.

Addressable Advertising: Brands cannot chase everyone, one needs to focus on those consumers

who are most relevant to one’s business, and one needs to stop wasting money on those consumers

who are not relevant.

Preserve the customer base

Valuable customers are the lifeblood of the brand with whom they choose to do business. Savvy

consumers sense that companies generally treat their potential customers better than their current

customers. They feel like they deserve to be recognized and rewarded for their loyalty. There are

specific ways leading companies consistently treat and engage their customers in the way they

expect.

Customer loyalty is born when companies fulfil their brand promise or value to their customers.

Additionally, companies that are ranked highest in customer satisfaction employ additional initiatives

that specifically cultivate loyalty and customer advocacy, whether it’s a point or reward system or


147

special access to exclusive events or benefits, or just something as basic as having their preferences

acknowledged and honoured.

The lifecycle is entirely interdependent. Retention efforts first start with strong acquisition. One needs

to attract the right people in the first place. Once one has captured a customer, the proper

maintenance is essential. One starts building their loyalty habit in the very first interactions with the

brand. A strong cross-enterprise single view of the customer (recognizing, learning and remembering)

can ensure that in their next interaction, whatever channel they chose to engage the brand through,

the brand is aware of the previous interaction.

Brands need to be both reactive and proactive in their efforts to reduce attrition.

Brand Development Opportunities

The question of whether brand managers should produce innovative new brands and designs or tap

into the potential of existing or little used brands is asked by managers in every major fashion

supplier. The answer is that neither option is easy or affordable for the average established brand

producers, let alone a newcomer.

The global brands have thousands of brand managers seeking just these answers; however the

reality of the situation is that there is little innovation to be achieved and few brands to be re-vitalised.

Thus brand managers are left with the same tired mantra of what is ‘the new black’ and what is ‘in this

season’.

All brand managers can do is to re-invent tired brands and rely on the neurosis of the consumer to

accept the smoke and mirrors proffered by the fashion industry.

Considering the product categories identified one can make the following comments:-

Young Casual Fashion wear

Can products be annually re-branded with merchandising deals with the latest Singers or Bands?

Experience as far back as the 1920s, through to the Rock and Roll Era, the Swinging 60s, the Disco

and Glam Rock 70s, the Punk 80s, the Girl Power 90s, and more recently has shown that music fads

and styles are unable to support fashion products for more than a few years. Fashion based on

popular culture tends to be a temporary phenomenon and may terminally damage a brand if that

brand becomes associated with ‘last year’s music fad’. The use of popular culture as a fashion

stimulus is a short-term and dangerous strategy.

Which youth market Film Stars can be Fashion branded?

Film stars are frequently used as models and for celebrity endorsement purposes, however very few

of them have successfully been branded as a fashion product. The research shows that in the Asia-

Pacific region Celebrity Endorsement does not score very high in the factors which influence

consumers.

What new technology can be added to Youth Fashion: Electronics, Photovoltaic mobile phone

charging, new functional textiles?

In the Youth Fashion markets there are possibilities to incorporate technology into fashion products

and these items will enjoy the same success as would any gadget. If a brand manager could produce


148

a series of products, perhaps released on an annual basis, aimed at the youth market then it is

entirely possible that there would be a market for those products.

Career Fashion wear

How can Korean Women’s Fashion brands and designers compete with the established brands?

To establish a successful Career Fashion wear brand one ideally needs to tap into the mind-set of the

junior and middle manager. Senior managers and Directors do not purchase ‘Career wear’, they

purchase prime luxury brands.

Junior and middle are generally influenced by corporate imagery, be that fashion brands or corporate

logos. Therefore it is entirely possible that one might use one of the brands or corporate logos to

launch a Career Wear fashion brand.

Once could seek to re-engineer an obsolete brand like ‘Schiaparelli’ or one might decide to think

laterally and use a brand image which is established in the mind of the target customer base for some

other reason. It is possible to license brands like Bugatti, and use them to formulate fashion brands

which would have resonance with junior and middle manager. One might seek to licence other brand

images, for example, produce a Black Card Fashion brand based on the American Express card of

the same name. One might produce a brand with a small red distinctive logo on the lapel, perhaps

called Legion (reminiscent of the Légion d’honneur), which would confer some pre-negotiate rights for

the wearer (for example access to Airport Lounges or the Business Centres of hotel chains).

Branding images reflect the state of mind of the consumer and in this market sector the consumer is

striving for recognition.

Denim & Casual Fashion wear

How can one tap into existing brand names and consumer trends?

Denim and Casual Fashion wear is the province of US brands because they are based on the wide

open spaces of the American West. It is difficult for newcomers to sell other than discount and low

cost denim products.

Indeed one could extend the Porsche and Jaguar clothing merchandise into Shopping Mall and High

Street Jeans and Casual wear, however

How can one tap into leisure interests of the consumer?

It is not certain that denim continues to be associated with leisure pursuits any longer. In established

markets jeans are everyday wear which is used by a wide age demographic. Denim jackets, shirts,

and skirts have a somewhat uncertain image.

Sports & Outdoor Fashion wear

The problem for newcomers is that the established sportswear fashion brands have long term

arrangements with the major sports clubs and tournaments. It is this exposure, (with logos on the

shirts of sportsmen and throughout the sporting environment), which influence the consumers. With

many decades of this brand positioning it is very difficult for a newcomer to impact on this market.


149

How can one produce branded functional product innovations using new textiles and functional

research?

If such innovation was possible then it would have already be done by the existing brand managers.

Indeed recent scientific research, and the resulting publicity, has revealed that the claims made by the

sport footwear manufacturers regarding the benefits of the technical construction and materials used

in their footwear were entirely false.

How can one tap into sporting trends, sports personality brands, or sports venue brands?

With sportswear brands there is always the possibility to promote brands through signing up sports

personalities and sports venues. This is an expensive business and the short-term advertising effect

is variable. Essentially the brand is re-enforced through its identification with the sports personality or

tournament and this is a highly seasonal phenomenon and a short-lived phenomenon. It is unlikely

that a newcomer could achieve any real headway in this market segment unless the newcomer was

prepared to make a very significant cash investment in the project. That investment would certain run

into several tens of millions of dollars.

Fashion accessories

Can one extend existing Fashion wear brands into fashion accessories?

The extension of fashion wear brands into fashion accessories is a strategy that is sometimes used

by brand names. Certainly the use of co-ordinated accessories which are introduced concurrent with

that season’s designs are a valuable addition to the product range. The supply of loose accessories

(i.e. not part of any collection) may have some drawbacks for the overall brand image as it will tend to

distract from the overall position of the brand and the seasonal imagery.

Can one offer product innovation or functionality?

There are product and technological innovations frequently applied to fashion accessories. One

example is the Novero series of fashion headsets. This product range goes from a US$110,000

diamond fashion headset, to a US$1000 lapis lazuli headset to more modestly price headsets. Clearly

the buyers of these accessories are rather more neurotic than the average fashion buyer, and as such

represent a good marketing opportunity.

Similarly there are many possibilities to build electronics into handbags, belts, and other fashion

accessories and these opportunities might be profitably explored.

Lingerie

There are several global lingerie brands, for example Victoria’s Secret, La Perla and La Senza,

however all have suffered from reduced margins and trading difficulties over the years.

In December 2011 the UK operation of La Senza went into administration with the closure of 164

outlets. This is a difficult market sector in which to may sustainable returns.

Pierre Cardin Lingerie was introduced in Singapore in 1995 and in general this brand was successful.

However, whilst the Cardin name may be known to older women, it is probably not so well known to

the younger women, and their partners, who are the target demographic for lingerie products.

Which personalities, images or perceptions can be tapped to produce an outstanding lingerie brand?


150

Victoria’s Secret has used series of models (the Victoria’s Secret Angels) to promote their products

and this would appear to be the trend. The use of such models may be due to the fact that a large

part of their income is derived from men purchasing articles for women. The business model is firmly

targeted at men and this is reflected in their store fittings, together with their catalogue and online

business.


151

Fashion Industry Checklist

Any checklist used by fashion wear producers and brand managers will include some fundamental

topics. These include: fashion fundamentals, principles and elements of design; product options and

preparation; product selection and continuity; and consumer strategies.

Fashion Design and Merchandising

Country specific

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How effective are the existing products and designs in demonstrating the potential for greater market penetration in the country?

Go

od

Bad

Bad

Avera

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Go

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Avera

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Avera

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Go

od

Avera

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Go

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Avera

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Go

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Go

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Bad

Go

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Avera

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Avera

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How well do the existing products and design evoke the fundamentals of fashion design and merchandising? G

oo

d

Bad

Bad

Avera

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Go

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Avera

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Avera

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Go

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Avera

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Go

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Go

od

Go

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Bad

Go

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Avera

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How well do the brands adhere to the recognised principles of fashion products? G

oo

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Avera

ge

Avera

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Avera

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Go

od

Avera

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Avera

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Go

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Avera

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Go

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Avera

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Go

od

Go

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Bad

Go

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Avera

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How well do the existing products cover all the available options within the fashion design and merchandising? G

oo

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Bad

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Go

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Avera

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Go

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Go

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Go

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Go

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Bad

Go

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How well developed are consumer strategies in respect of the selection, development, and assortment of fashion products?

Go

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Bad

Bad

Avera

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Go

od

Avera

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Avera

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Go

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Avera

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Go

od

Avera

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Go

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Go

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Bad

Go

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Avera

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How developed are the merchandising strategies? G

oo

d

Bad

Bad

Avera

ge

Go

od

Avera

ge

Avera

ge

Go

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Avera

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Go

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Avera

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Go

od

Go

od

Bad

Go

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Avera

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Avera

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How skilled are the management and leadership in the country? G

oo

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Bad

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Avera

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Go

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Avera

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Avera

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Go

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Avera

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Go

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Avera

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Go

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Go

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Bad

Go

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Avera

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How well do the retail management perform in respect of leadership strategy? G

oo

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Bad

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Avera

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Go

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Avera

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Avera

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Go

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Go

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Go

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Go

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How well do the retail management perform in respect of product strategy? G

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Bad

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Avera

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Go

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Avera

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Avera

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Go

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Go

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The data above is derived from trade commentary.


152

Performance Indicators

Country specific

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How well do the domestic brands interpret influences on fashion design? G

oo

d

Bad

Bad

Avera

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Go

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Avera

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Avera

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Go

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Avera

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Go

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Avera

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Go

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Go

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Bad

Go

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Avera

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Avera

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How well do the domestic brands identify and analyse characteristics of fashion products and designers? G

oo

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Bad

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Go

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Avera

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Go

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Go

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How well do the domestic brands perform in determining fashion trends? G

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Avera

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Go

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How well do the international brand images affect the fashion industry in the country? G

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Avera

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Go

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Go

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How much significance do the global brands have in the country? G

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Lim

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Lim

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Go

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Go

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Lim

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Lim

ited

How well do the existing brands perform in organizational and operational factors? G

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How do the domestic brands use technology in fashion design? W

ell

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Well

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Well

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Well

Avera

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Well

Well

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How well do the domestic brands identify and utilize fashion design concepts? W

ell

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Avera

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Well

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Application of Design – Performance Factors

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How well do the domestic brands use

elements of design in the country?

Well

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Well

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Well

Avera

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Well

Avera

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Well

Well

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ly

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How well do the domestic brands use the

principles of design in the country?

Well

Bad

ly

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Well

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Well

Avera

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Well

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Well

Well

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ly

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How well do the domestic brands use

colour schemes and illusions effectively

in apparel in the country? Well

Bad

ly

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ly

Avera

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Well

Avera

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Well

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Well

Well

Bad

ly

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How well do the domestic brands use the

principles of design to enhance the

appearance of body shapes in the

country?

Well

Bad

ly

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Avera

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Well

Avera

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Well

Avera

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Well

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Well

Well

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Well

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Industry Performance Indicators

Country specific

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How well do local entrepreneurs

recognise brands opportunities in the

country? Well

Avera

ge

Bad

ly

Avera

ge

Well

Avera

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Avera

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Well

Avera

ge

Well

Avera

ge

Well

Well

Bad

ly

Well

Avera

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Avera

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How good is the local knowledge and

skills in the fashion industry in the

country? Go

od

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ge

Bad

Avera

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Go

od

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Avera

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Go

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Avera

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Go

od

Avera

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Go

od

Go

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Go

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Avera

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How well do local entrepreneurs use

planning and systems for brand

management in the country? Well

Avera

ge

Bad

ly

Avera

ge

Well

Avera

ge

Avera

ge

Well

Avera

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Well

Avera

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Well

Well

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154

Performance Indicators for brand selection, development, and distribution

Country specific

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Decision-making processes to selecting, purchasing, and development fashion brands in the country. G

oo

d

Avera

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Bad

Avera

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Go

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Avera

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Avera

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Well

Avera

ge

Go

od

Avera

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Go

od

Go

od

Bad

Go

od

Avera

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Avera

ge

Evaluating the impact of fashion trends and forecasting on consumer choices in the country. G

oo

d

Avera

ge

Bad

Avera

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Go

od

Avera

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Well

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Go

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Go

od

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Go

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Avera

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Determining the criteria for fashion products that meet the needs of consumers. G

oo

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Well

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Go

od

Go

od

Bad

Go

od

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Avera

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Ability in planning product mixes and coordinating existing product ranges. G

oo

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Avera

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Bad

Avera

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Go

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Avera

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Avera

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Go

od

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Go

od

Avera

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Go

od

Go

od

Bad

Go

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Avera

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Analysis of the quality of product crafting, fabric, and design. G

oo

d

Bad

Bad

Avera

ge

Go

od

Avera

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Avera

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Go

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Avera

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Go

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Avera

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Go

od

Go

od

Bad

Go

od

Avera

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Avera

ge

Analysis of the selection and use of fashion accessories. G

oo

d

Bad

Bad

Avera

ge

Go

od

Avera

ge

Avera

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Go

od

Avera

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Go

od

Avera

ge

Go

od

Go

od

Bad

Go

od

Avera

ge

Avera

ge

Evaluating apparel care procedures.

Go

od

Bad

Bad

Avera

ge

Go

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Avera

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Avera

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Go

od

Avera

ge

Go

od

Avera

ge

Go

od

Go

od

Bad

Go

od

Avera

ge

Avera

ge

Analysis of the sources for purchasing fashion products. G

oo

d

Avera

ge

Bad

Avera

ge

Go

od

Avera

ge

Avera

ge

Go

od

Avera

ge

Go

od

Avera

ge

Go

od

Go

od

Avera

ge

Go

od

Avera

ge

Avera

ge



155

Performance Indicators for merchandising strategies

Country specific

Au

stra

lia

Ban

glad

esh

Cam

bo

dia

Ch

ina

Ho

ng

Ko

ng

Ind

ia

Ind

on

esi

a

Jap

an

Mal

aysi

a

Ne

w Z

eal

and

Ph

ilip

pin

es

Sin

gap

ore

Sou

th K

ore

a

Sri L

anka

Taiw

an

Thai

lan

d

Vie

tnam

Planning the impact of visual merchandising. G

oo

d

Bad

Bad

Avera

ge

Go

od

Avera

ge

Avera

ge

Go

od

Avera

ge

Go

od

Avera

ge

Go

od

Go

od

Bad

Go

od

Avera

ge

Avera

ge

Planning the role and effectiveness of advertising on consumer choices. G

oo

d

Bad

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Avera

ge

Go

od

Avera

ge

Avera

ge

Go

od

Avera

ge

Go

od

Avera

ge

Go

od

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od

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Go

od

Avera

ge

Avera

ge

Identifying strategies for promoting products and services. G

oo

d

Avera

ge

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ge

Go

od

Avera

ge

Avera

ge

Go

od

Avera

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od

Avera

ge

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od

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od

Bad

Go

od

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ge

Avera

ge

Planning the functions of the operational and marketing processes. G

oo

d

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ge

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od

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ge

Avera

ge

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od

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ge

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od

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ge

Go

od

Go

od

Bad

Go

od

Avera

ge

Avera

ge

Product displays using the elements and principles of design. G

oo

d

Bad

Bad

Avera

ge

Go

od

Avera

ge

Avera

ge

Go

od

Avera

ge

Go

od

Avera

ge

Go

od

Go

od

Bad

Go

od

Avera

ge

Avera

ge

Analysis of viable merchandising techniques. G

oo

d

Bad

Bad

Avera

ge

Go

od

Avera

ge

Avera

ge

Go

od

Avera

ge

Go

od

Avera

ge

Go

od

Go

od

Bad

Go

od

Avera

ge

Avera

ge

Determine the impact of technology on the marketing and merchandising of fashions. G

oo

d

Bad

Bad

Avera

ge

Go

od

Avera

ge

Avera

ge

Go

od

Avera

ge

Go

od

Avera

ge

Go

od

Go

od

Bad

Go

od

Avera

ge

Avera

ge

Identify viable markets for fashion products. G

oo

d

Avera

ge

Bad

Avera

ge

Go

od

Avera

ge

Avera

ge

Go

od

Avera

ge

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od

Avera

ge

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od

Go

od

Bad

Go

od

Avera

ge

Avera

ge



156

Market Strategy Insight

Market Entry Possibilities and Criteria

The data provided by the market difficulties, market, financial and consumer analyses indicate a road

map for market entry in the Asia-Pacific region. It is necessary not only to evaluate the short-term

prospects (1-7 years), but more importantly the medium term (7-14 years), and the long term (14+

years). More important than the size of the market potential is the potential for the return on

investment. Therefore this section will attempt to provide a concise appraisal of the market entry

possibilities and the rationale behind those choices.

Market Entry Difficulties

S = 1-7 years

M = 7-14 years

L = 14-21 years

Yo

un

g

Cas

ua

l W

ea

r

Care

er

Wea

r

Den

im &

Cas

ua

l W

ea

r

Ev

ery

da

y

We

ar

Sp

ort

s &

Ou

tdo

or

We

ar

Lin

ge

rie

&

Un

de

rwe

ar

Fa

sh

ion

Acc

es

so

rie

s

S M L S M L S M L S M L S M L S M L S M L

Australia

Bangladesh

Cambodia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Philippines

Singapore

South Korea

Sri Lanka

Taiwan

Thailand

Vietnam

= Easy = Neutral = Difficult

Market Entry Difficulties refer to the ease of entry to the market, the potential for direct investment and

the regulatory environment for the products and the operation of a business.


157

Market Potential

S = 1-7 years

M = 7-14 years

L = 14-21 years

Yo

un

g

Cas

ua

l W

ea

r

Care

er

Wea

r

Den

im &

Cas

ua

l W

ea

r

Ev

ery

da

y

We

ar

Sp

ort

s &

Ou

tdo

or

We

ar

Lin

ge

rie

&

Un

de

rwe

ar

Fa

sh

ion

Acc

es

so

rie

s


Australia

Bangladesh

Cambodia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Philippines

Singapore

South Korea

Sri Lanka

Taiwan

Thailand

Vietnam

= Growth = Static = Decline

The market potential is a function of market size, disposable income and propensity to consume. In

some countries, notable China, there is demographic dysfunction due to the one child policy and this

has created a serious problem with standard distribution of the population. Essentially in China there

are fewer females and there is an aging population. Both these factors in China will impact women’s

fashion products.


158

Financial Potential

S = 1-7 years

M = 7-14 years

L = 14-21 years

Yo

un

g

Cas

ua

l W

ea

r

Care

er

Wea

r

Den

im &

Cas

ua

l W

ea

r

Ev

ery

da

y

We

ar

Sp

ort

s &

Ou

tdo

or

We

ar

Lin

ge

rie

&

Un

de

rwe

ar

Fa

sh

ion

Acc

es

so

rie

s


Australia

Bangladesh

Cambodia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Philippines

Singapore

South Korea

Sri Lanka

Taiwan

Thailand

Vietnam

= Growth = Industry Averages = Decline


159

Consumer Potential & Attitudes

S = 1-7 years

M = 7-14 years

L = 14-21 years

Yo

un

g

Cas

ua

l W

ea

r

Care

er

Wea

r

Den

im &

Cas

ua

l W

ea

r

Ev

ery

da

y

We

ar

Sp

ort

s &

Ou

tdo

or

We

ar

Lin

ge

rie

&

Un

de

rwe

ar

Fa

sh

ion

Acc

es

so

rie

s


Australia

Bangladesh

Cambodia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Philippines

Singapore

South Korea

Sri Lanka

Taiwan

Thailand

Vietnam

= Positive = Neutral = Negative


160

Relative Return on Investment by country 1-7 years & 7-14 years The data provided by the market difficulties, market, financial and consumer analyses plotted against

the likely investment costs within each country produces a snapshot of the relative levels of Return on

Investment for each country in the short-term (1-7 years), the medium term (7-14 years), and the long

term (14+ years).

The data above is derived from relative product, market and financial analysis.


161

Relative Return on Investment by country 14+ years & Overall



162

Relative Return on Investment by Product Category The data provided by the above analyses is used to provide a breakdown of the potential of Return on

Investment for each product category for each country in the short-term (1-7 years), the medium term

(7-14 years), and the long term (14+ years).

Relative Return on Investment by country for Young Casual Wear



163

Relative Return on Investment by country for Career Wear

The data above is derived relative product, market and financial analysis.


164

Relative Return on Investment by country for Denim & Casual Wear



165

Relative Return on Investment by country for Every day Wear



166

Relative Return on Investment by country for Sports & Outdoor Wear



167

Relative Return on Investment by country for Lingerie & Underwear



168

Relative Return on Investment by country for Fashion Accessories



169

Opinions of the fashion and retail experts on introducing new brands

The data above is derived from the opinions of the fashion and retail experts in each country.


170

MARKET RESEARCH COVERAGE

Markets & Products covered The report will give market data for each of the below Women's Fashion Product and Market Sectors, by year Historic: 1997-2011, and Forecast: 2012-2028. Data will be given for the Vietnam National Market plus market data for each major City in the Vietnam.

Product Sectors

• Female Garment Categories covered

1. Fur & Fun Fur Garments 2. Dresses 3. Outerwear Coats, Jackets & Rainwear 4. Suits, Touser Suits, Jackets, Blazers & Business Wear 5. Slacks, Trousers, Jeans, Shorts & Skirts 6. Tops, T-Shirts, Knit & Woven Tops, Blouses, Sweaters 7. Sportswear & Swimwear 8. Hosiery, Pantyhose, Socks & Tights 9. Underwear, Bras & Girdles 10. Lingerie, Sleepwear & Loungewear 11. Hats, Scarves, Wigs & Hairpieces 12. Accessories, Handbags, Wallets, Neckwear, Gloves & Belts 13. Tailored Garments 14. Casual, Sweat tops, Pants, & Warm-ups 15. Functional Garments, Uniforms, Smocks & Workwear 16. Footwear 17. Dress & Casual Footwear 18. Athletic Footwear & Trainers

• Female Fashion Categories covered

19. Young Casual Wear 20. Career Wear 21. Denim & Casual Wear 22. Everyday Wear 23. Sports & Outdoor Wear 24. Lingerie & Underwear 25. Fashion Accessories 26. Footwear


171

Survey Data The investigation consisted of field surveys and consumer interviews. Discussions with the local experts covered the following issues based on the interviewees’ personal or corporate experiences. Interviews were conducted with various industry experts. Fashion Experts at Fashion Magazines or other Media regarding the existing market conditions for Women’s Fashion Brands, the existing penetration of Asian Women’s Fashion Brands and the future prospects for Asian Women’s Fashion Brands. Fashion Trade Wholesalers, Fashion Brand Managers, Fashion Trade Buyers, Fashion Retailers, In-store Retail Negotiators were interviewed. The surveys of Consumers and Retail Customers were done to analyze overall Women’s Fashion retail issues, Brand awareness and attitudes towards Asian brands and imports, criticisms of existing retailers, methods for fashion retailers to improve service, et cetera. The Surveys covered Retail Store Customers and Consumers of Fashion products.

Consumer Surveys Consumer Surveys Details

Consumer Surveys

Buyer Profiles: http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4A.xls

Competitors: http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4C.xls

Retail Operations: http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4O.xls

Products: http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4P.xls

Trading Area: http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4T.xls

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4A.xls

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4C.xls

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4O.xls

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4P.xls

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Databases/SU4T.xls


172


Retailer & Wholesaler Surveys Details








Trade Decision Makers Surveys Details


















173


Store Performance Surveys Details







Competitors

1. Luxury Brands

2. European High Street Brands

3. American High Street Brands

4. Asian Brands

5. Vietnamese Labels

6. Calvin Klein Jeans

7. Mango

8. GAP

9. Zara

10. Esprit

11. DKNY

12. G2000

13. M)phosis

14. GUESS

15. Karen Millen







174

Retail Operations

1. Brand Management

2. Product Management

3. Marketing & Selling Activity

4. Store Presentation & Merchandising

5. Product Offering Specifications & Characteristics

6. Product Quality Control

7. Design Research & Development

8. Customer Handling

9. Product Sourcing & Control

10. Financial Controls

11. Staff Training / Control & Relations

12. Product Throughput Capacity & Control

13. Supply System Control & Development

14. Distribution Control

15. Product Handling Systems & IT

Products

1. Cardigans & Jumpers

2. Dresses

3. Jackets & Coats

4. Jeans & Denim

5. Knitwear

6. Lingerie

7. Maternity Wear

8. Nightwear

9. Shirts & Blouses - Tops & T-Shirts

10. Suits

11. Skirts

12. Sportswear & Swimwear

13. Stockings, Tights & Socks

14. Trousers, Leggings, Culottes, Shorts, Dungarees

15. Accessories


175

Buyer Profiles

1. Wholesalers

2. Trade Buyers

3. Retailers

4. Consumers

5. Immediate Distributors

6. Immediate Trade

7. Immediate End Users

8. Immediate Other Users

9. End User Age: <25

10. End User Age: 25-55

11. End User Age: 25-55

12. End User Social Group: AB

13. End User Social Group: C1

14. End User Social Group: C2

15. End User Social Group: DE

Trading Area

1. Ho Chi Minh City

2. Hanoi

3. Haiphong

4. Da Nang

5. Nha Trang

6. Qui Nhon

7. Hue

8. Can Tho

9. Nam Dinh

10. Vinh

11. My Tho

12. Cam Ranh

13. Vung Tau


176

Geographic Coverage

The report will provide data for Vietnam National market, plus market data for the largest City and

Town in Vietnam. See:

http://www.worldconsumption.info/Womens_Fashion_Vietnam/BASE_FOLDERS/World_Cities/VM.ht

ml

Financial data The databases gives Financial data for each of the below Women's Fashion in Vietnam Financial Data and Margins by year Historic: 1997-2011, and Forecast: 2012-2028.

Financial Data Scenarios

There are a large number of Financial Scenarios available, for example, the Median Scenario:-

http://www.worldconsumption.info/Womens_Fashion_VietnamBASE_FOLDERS/xls_MarketResearch/F0M.xls

Financial Margins & Ratios Data Scenarios There are a large number of Financial Margins & Ratios available, for example, the Median Scenario:-

http://www.worldconsumption.info/Womens_Fashion_VietnamBASE_FOLDERS/xls_MarketResearch/G0M.xls

http://www.worldconsumption.info/Womens_Fashion_VietnamBASE_FOLDERS/xls_MarketResearch/F0M.xls

http://www.worldconsumption.info/Womens_Fashion_VietnamBASE_FOLDERS/xls_MarketResearch/G0M.xls


177

Vietnam General Contents

This report provides users with commercial intelligence on the Women's Fashion markets and industry in Vietnam, plus market, financial and industry data on each of the Towns and Cities in Vietnam. There are a large number of towns covered in this report for which overall market data is provided. Detailed market and product data is given for End User significant towns and for End User significant Product Launch towns. Detailed financial data is given for commercially significant towns and for commercially significant Product Launch towns. This report is formatted to give both a narrative description of the various matters covered as well as provide readers with the ability to directly use the Chapters (via Microsoft Word or compatible word processors) to produce their own reports and documentation. Experienced users will be able to use the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics - as well as sophisticated business and commercial forecasts and models. The databases are provided in both Excel spreadsheets and an Access database. Explanatory notes are provided as word processor documents or in PDF formats. The narrative in this report is necessarily illustrative in its terminology and seeks to provide a basic degree of business logic and theory which indicates the rational applied in the forecasting and modelling methodology. The databases provided are specifically designed to provide users with a uniform and consistent numeric measure of both (normally) quantifiable values as well as conceptual factors which are (usually) only capable of qualification. Experienced users will know how to apply forecasting and modelling software to the numeric data provided to generate highly detailed and discrete business planning models. The databases provided in this report can be used directly with databases on other product, markets and industries in other countries. The databases are specifically designed to be transnational, currency neutral, inflation and purchasing parity adjusted, product parity and product equivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked or merged programmatically in business planning models to provide multi-national and multi-level analysis.


178

Vietnam Report Table of Contents

For a detailed Table of Contents for each chapter, database or spreadsheet: click on the Blue

headings shown below. This will open a page in your browser which fully specifies the contents of

that heading. These are links to the web site and they open the section or chapter in question.

Please also see the Notes to the contents: Notes

Within each heading there are links with detailed descriptions and explanation of the contents; these

can be opened when the link is clicked.

Vietnam Core Database Open the Core Database here

Sections

Preface

Chapters

Databases

Financials

Industry

Markets

Products

Grids

Reference

Contents

Legend

Cities

Countries

http://www.worldconsumption.info/Womens_Fashion_Vietnam/PureData/mr_notes.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/index.html

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_INTRO_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_CHAPTERS_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_SPREADSHEET_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FINANCIAL_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_INDUSTRY_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARKET_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PRODUCTS_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FRAME_GRIDSX.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_REFERENCE_DATA.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_CONTENTS_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_LEGEND.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_Cities.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MAP_TYPE.htm


179

Chapters

Chapter 1 ADMINISTRATION

Chapter 2 ADVERTISING

Chapter 3 BUYERS – COMMERCIAL OPERATIONS

Chapter 4 BUYERS – COMPETITORS

Chapter 5 BUYERS – MAJOR CITY

Chapter 6 BUYERS – PRODUCTS

Chapter 7 BUYERS – TRADE CELL

Chapter 8 COMPETITIVE INDUSTRY ANALYSIS

Chapter 9 COMPETITOR ANALYSIS

Chapter 10 COUNTRY FOCUS

Chapter 11 DISTRIBUTION

Chapter 12 FINANCIAL - BUSINESS DECISION SCENARIOS

Chapter 13 FINANCIAL - CAPITAL COSTS FINANCIAL SCENARIOS

Chapter 14 FINANCIAL - CASHFLOW OPTION SCENARIOS

Chapter 15 FINANCIAL - COST STRUCTURE SCENARIOS

Chapter 16 FINANCIAL - HISTORIC INDUSTRY BALANCE SHEET

Chapter 17 FINANCIAL - HISTORIC MARKETING COSTS & MARGINS

Chapter 18 FINANCIAL - INVESTMENT + COST REDUCTION SCENARIOS

Chapter 19 FINANCIAL - MARKET CLIMATE SCENARIOS

Chapter 20 FINANCIAL – MARKETING COSTS

Chapter 21 FINANCIAL - MARKETING EXPENDITURE SCENARIOS

Chapter 22 FINANCIAL – MARKETING MARGINS

Chapter 23 FINANCIAL - STRATEGIC OPTIONS SCENARIOS

Chapter 24 FINANCIAL - SURVIVAL SCENARIOS

Chapter 25 FINANCIAL - TACTICAL OPTIONS SCENARIOS

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_ADMINIST.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_ADVERTIS.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_BUYER_CO.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_BUYER_CC.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_BUYER_B.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_BUYER_CP.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_BUYER_CT.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_COMP_IVE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_COMP_CC.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_CTRY_FOC.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_DISTRIBU.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_BASE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_CAPT.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_CASH.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_COST.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_HIST.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_MKTG.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_INVS.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_MARK.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FINAMKTG_F0M.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/http:/www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_MEXP.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FINBMKTG_I0M.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_STGY.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_SURV.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_FIN_TACT.htm


180

Chapter 26 GEOGRAPHIC DATA

Chapter 27 INDUSTRY - NORMS

Chapter 28 MAJOR CITY MARKET ANALYSIS

Chapter 29 MARKET CAPITAL ACCESS SCENARIOS

Chapter 30 MARKET CASHFLOW SCENARIOS

Chapter 31 MARKET ECONOMIC CLIMATE SCENARIOS

Chapter 32 MARKET INVESTMENT + COSTS SCENARIOS

Chapter 33 MARKET MARKETING EXPENDITURE SCENARIOS

Chapter 34 MARKET RISK SCENARIOS

Chapter 35 MARKET STRATEGIC OPTION SCENARIOS

Chapter 36 MARKET SURVIVAL OPTION SCENARIOS

Chapter 37 MARKET TACTICAL OPTION SCENARIOS

Chapter 38 MARKETING EXPENDITURE -v- MARKET SHARE

Chapter 39 MARKETING STRATEGY DEVELOPMENT

Chapter 40 MARKETS

Chapter 41 OPERATIONAL ANALYSIS

Chapter 42 OVERSEAS DEVELOPMENT

Chapter 43 PERSONNEL MANAGEMENT

Chapter 44 PHYSICAL DISTRIBUTION + CUSTOMER HANDLING

Chapter 45 PRICING

Chapter 46 PROCESS + ORDER HANDLING

Chapter 47 PRODUCT ANALYSIS

Chapter 48 PRODUCT DEVELOPMENT

Chapter 49 PRODUCT MARKETING FACTORS

Chapter 50 PRODUCT MIX

Chapter 51 PRODUCT SUMMARY

Chapter 52 PROFIT RISK SCENARIOS

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_GEOG_CTY.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_IN_IND_N.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_COMP_MKT.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_CPT.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_CSH.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_CLI.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_INV.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_MEX.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_RSK.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_STG.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_SRV.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARK_TAC.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MKTSHARE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MKTG_STG.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_MARKETS_.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_COMP_CO.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_OVERSEAS.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PERSONEL.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PHYSICAL.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PRICING_.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PROCESS_.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_COMP_CP.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PROD_DEV.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PRODMKTG.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PROD_MIX.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PROD_SUM.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PROF_RSK.htm


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Chapter 53 PROMOTIONAL MIX

Chapter 54 SALESFORCE DECISIONS

Chapter 55 SALES PROMOTION

Chapter 56 SURVEYS

Chapter 57 TARGETS - PRODUCT + MARKET

Chapter 58 TECHNOLOGY

Chapter 59 TRADE CELL ANALYSIS

Chapter 60 URBAN COMPETITION

Chapter 61 TOWNS - FINANCIAL

Chapter 62 TOWNS - INDUSTRY

Chapter 63 TOWNS - MARKET

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PROM_MIX.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_SALEFORC.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_PROMOTIO.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_SURVEY.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_TARGETS_.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_TECHNOLO.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_COMP_CT.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_URBANCOMP_TYPE.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_TOWN_FINANCIAL.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/MarketResearch/MR_TOWN_INDUSTRY.htm



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BUSINESS PLANNING

Checklist

Before one can develop a realistic business plan one needs to establish the business objects and

then to produce a database with the following parameters:-

1. Business start-up

a. Company Law

b. Capital Requirements

2. Credit

a. Availability of trade credit

b. Banking policies

c. Foreign Exchange regulations

d. Remittance of Profits

e. Credit data considerations

3. Employment

a. Employment contracts

b. Employment laws

4. Import of Goods

a. Quotas & Licensing

b. Prohibitions & Restrictions

c. Free imports

d. Tariff-rate quotas

e. Approvals & Inspections

5. Import Duties

a. General Rates

b. Most-Favoured Nation Rates

c. Agreement Rates

d. Preferential Rates

e. Tariff-rate Quota Rates

f. Provisional Rates

g. Preferential Duty Reductions

6. Taxes

a. Value Added Taxes, Reduced Rates, Exemptions, Rebates

b. Business Taxes, Tax Conventions, Specific Product/Trade Taxes

c. Miscellaneous Taxes

7. Product Labelling & Certification

a. Language of labels

b. Safety Certifications

c. Mark Lists

d. Labelling requirements


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8. Authorities

a. Customs

b. Financial

c. Commerce

d. National, State, Regional, City administrations

9. Compliance

a. Tax compliance

b. Enforcement of regulations

c. Treatment of foreign enterprises

d. Corruption

10. Retailing

a. Regulations

b. Domestic Retail Development

c. Foreign Retail Investments

d. Economic & Political policies

e. Establishment of enterprises

f. Methods for Market Entry (M&A, Sole Distributor, Franchise, Local presence, etc.)

g. Consumer Markets

h. Logistics & Supply Chains

i. Retail Location & Property

j. Infrastructure difficulties

k. Transaction Costs

l. Bureaucracy

m. Distribution Channels

n. Personnel

o. Financial management

p. Availability of premises

q. Availability of services

11. Retail Demand

a. Emergence of urban middle class

b. Demand stimulation & Disposable Incomes

c. Cultural Factors and Cultural change

d. Retail outlet distribution

e. Infrastructure development

f. Fragmentation of Markets

g. Economic & Socio-cultural demarcations

h. Consumer Segments

i. Consumer Lifestyles

j. Consumer Prejudices

k. Strength of Domestic companies

l. Aggressiveness of Domestic companies

12. Retail Values

a. Growth

b. Real –v- Forecast

13. Demand Drivers

a. Supply Chain Cost reduction


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b. Store Format

c. Information dissemination and reception

d. Shopping Habits

e. Service provision

f. Customer Demand / Expectation satisfaction

g. Product Pricing

h. Retail Channel Development

i. Product Mix

j. Marketing Mix

k. Family size and composition

l. Geographic location

m. Regional diversity

14. Competition

a. Domestic Competition

b. International Competition

c. New Entrants

d. Retail Consolidation

e. Aggressiveness of Players

f. Bargaining Power of Suppliers

g. Bargaining Power of Buyers

h. Cost Reduction

i. Location & store siting

j. Internet

k. Payment systems

15. Market Entry Strategies & Control of Operations

a. Own Local Manufacture & Distribution & Retail Outlets

b. Own Stores

c. Joint Ventures & Mergers

d. Licensing

e. Franchising

f. Stocking Distributors

g. Sales Representation to Wholesalers

h. Direct Sales to Consumers

16. Tactics

a. Control and Define Supply Chain and Distribution policies and finances

b. Enter smaller cities

c. Concentrate of younger demographics

d. Entrench & strengthen brand recognition

e. Develop Sales Channels / Internet / TV / Malls / Shopping experiences

f. Offer intangible benefits

g. Reduce Costs and Reduce Prices


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Checklist implementation

Business Planners should input their business objectives and parameters using a database format,

for example, the ‘Business_Planning_Checklist_Retailing.xlsx’ file which is found in the Toolkit.

Basic data on Customs Tariff, Duty & Taxation levels, Import restrictions & Regulations, Shipping &

Packaging Requirements, Customs Clearance Procedures and time delays, Port of Entry data: Name,

Location, Description, Customs Handling, Storage, Transport facilities, et cetera, can be found in the

supporting documentation for each country:-

http://www.worldconsumption.info/Womens_Fashion_Australia/Australia_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Bangladesh/Bangladesh_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Cambodia/Cambodia_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_China/China_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_HongKong/HongKong_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_India/India_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Indonesia/Indonesia_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Japan/Japan_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Malaysia/Malaysia_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_NewZealand/NewZealand_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Philippines/Philippines_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Singapore/Singapore_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_SouthKorea/SouthKorea_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_SriLanka/SriLanka_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Taiwan/Taiwan_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Thailand/Thailand_Doing_Business.pdf http://www.worldconsumption.info/Womens_Fashion_Vietnam/Vietnam_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Australia/Australia_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Bangladesh/Bangladesh_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Cambodia/Cambodia_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_China/China_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_HongKong/HongKong_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_India/India_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Indonesia/Indonesia_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Japan/Japan_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Malaysia/Malaysia_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_NewZealand/NewZealand_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Philippines/Philippines_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Singapore/Singapore_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_SouthKorea/SouthKorea_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_SriLanka/SriLanka_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Taiwan/Taiwan_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Thailand/Thailand_Doing_Business.pdf

http://www.worldconsumption.info/Womens_Fashion_Vietnam/Vietnam_Doing_Business.pdf


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Advancing your Project

Once the business planner has defined the business objectives and the necessary parameters

attention can then be turned to the practical isolation of locations for retail outlets. This is necessary

irrespective of whether a decision has been made to open brand owner stores or to franchise the

brand.

Next one needs to select the target geographic areas within Vietnam and this is done with reference

to the City and Town data in the core database. The data accessed should include:-

The City or Town

Sub-divisions of the Retail Districts

Features and Characteristics of the Retail Districts

Major Malls, Shopping Centres, Retail Streets

Advertising and Marketing activities of Retailers

Demographic and Social Customer Base served

Spending Levels of consumers

Brand Preferences of consumers


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Cashflow Projections

The client can order Cashflow projections (as part of the After-Sales Service) once operational

parameters have been set. The operational parameters are the initial retail capital investments, store

location, overheads, staff levels, et cetera.

Cashflow projections are done using a monthly interval and will depend on which month the retail

store will open. It is not possible to produce Cashflow projections without knowledge of the Start

month and other market criteria. The first few months of sales revenue in the retail fashion business

will depend on which month a store first opens. Other items, like pre-startup expenses, opening

balances, et cetera, must be known before a Cashflow projection can be made.




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The Business Plan Programme

Users can produce a basic printed Business Plan if that is all that is needed. For a more detailed

Business Plan, the software will take users through a series of forms and utilities which will allow one

to specify the commercial plan objectives and the project events; one then produces a Project

database. Users can then generate an advanced Project Dialogue database which provides

detailed guidelines and a project management action plan for the country covered by the project. In

addition, if needed, users can obtain additional human resources and support services to produce an

assisted Business Plan. The software then generates a Business Plan Web which incorporates the

business plan objectives and the underlying market research findings. Finally, if needed, a modelling

level Business Plan is available, and this incorporates highly sophisticated business forecasting

components.

Business Plan: Basic

With only the market research data, users can produce a Basic Business Plan using the Word document

template which is provided.

This is the quickest and simplest Business Plan users can write; and it is useful when one is producing a printed

business plan for a local business or trade. This type of business plan would suit a small business start-up where

users have to submit a simple business plan to their bankers or investors.

Business Plan: Detailed

The second level of Business Plan, which is used as a commercial blueprint for the project, produces a Detailed

Web site. The web based plan is better suited if users wish to run a number of scenarios and then distribute

those finding to a project team and/or to several recipients. The web can be on a single computer, on an intranet

site, or (if the participants are not in one location) a password protected internet site.

This web based business plan is useful when one is producing a commercialised business plan which needs the

precise elements of the business plan quantified in a series of formal documents. This type of business plan

would suit a business start-up which is run by a project team that needs the project elements coordination.

Business Plan: Advanced

The third level extends and develops the above Business Plan Web to produce an Advanced project

management blueprint which includes both the commercial business plan as well as a project management

schedule (for the country) which allows the project designers to specify and coordinate the commercial elements

with the activities of the project team.

This business plan web will orchestrate the project managers and project team, human resources, the

commercial participants, the physical resources, and the purchased products and services.


189

Business Plan: Assisted

In addition to the above Business Plan webs, users can also augment the project operation with the

additional human resources and support services provided by us. These services are entirely flexible

and can be used to either develop the project methodology and planning structure, or as elements

which form part of the physical project.

These services are injected into the overall Business Plan and become an integral part of the business

planning activities. In this way the project managers and project team can use our human resources

and services seamlessly as part of the project elements.

Business Plan: Modelling Level

The modelling level business planning resources use a battery of macro and micro economic, industry and

market level, product and buyer, forecasting models to produce medium and long-term business plans.

These are bespoke business planning resources which are tailored to the user's individual circumstances and

needs.

Installing the Business Plan Programme

The business plan programme is installed by running BusinessPlanSetUp.exe.

The installation puts this shortcut on your desktop to open the database.

When you install the Business Plan software it creates a Business Plan directory folder on your

computer. So that you can easily find the folder, it is put on your root directory. The structure of this

folder is shown here.

From this folder you can generate any number of Business Plan projects, and these individual

projects are then saved to the Project folder you specify in the project generation process. See the

structure of this directory here.

http://www.worldconsumption.info/Womens_Fashion_Vietnam/PLAN/BusinessPlanSetUp.exe

http://www.worldconsumption.info/Womens_Fashion_Vietnam/PLAN/BusinessPlanSetUp.exe

http://www.worldconsumption.info/Womens_Fashion_Vietnam/PLAN/BP_Installation.htm

http://www.worldconsumption.info/Womens_Fashion_Vietnam/PLAN/BP_ProjectWeb.htm


190

How it works...

First, review the Market Research to gain an understanding of the market and the industry. This is a

simple process which allows users to browse the Market Research Web and quickly pick those areas

of interest and potential business opportunity.

Second, install and run the Business Plan software to generate the detailed commercial and project

management databases. Each Business Plan is a single project and the user can run as many

projects, or business plan scenarios, as required.


191


192

The Business Plan software takes the user through a series of database forms and spreadsheets

which will result in the production of a comprehensive and cohesive Business Plan:-

One can modify the business plan, or run as many different scenarios as necessary, to refine a

particular business plan or to explore alternatives.

Third, run the Project Dialogue software to generate the advanced Project Action Plan databases for

the country covered by the project.


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The Project Dialogue software takes the user through a series of database forms and spreadsheets

which will result in the generation of the detailed Project Action Plan databases and timetables for the

country that the project will cover:-

Fourth, users can obtain further services as part of the After-Sales Service, including a Service Team,

Consultants, Resources, Support Services, and Corporate Research; and this allows users to access

additional project resources and/or produce more detailed analyses and blueprints for project

management.

There are many ad hoc services through which users can obtain the help they need to assist them to

reach their business goals. These ad hoc services can range from a full Service Team which can

produce a fully implemented turnkey project, to the simple provision of a consultant on the other end

of a telephone line to immediately answer a technical or commercial question, or the loan of a

programmer or systems engineer for a few hours. In addition to the human resources, users can also

access a wide range of commercial and physical resources, support services, and corporate

intelligence.


194

These resources and services become an integral and operational part of the project and are

managed by the project managers.

Fifth, users generate the Project Web which will allow users to view the project in its entirety.

Users do not need to complete all the forms; however the ones which users do not complete will

result in incomplete project web pages. Users can edit out these unwanted web pages. Users can of

course return to these forms later and complete any missing data and then re-generate the project

web.


195

Users can update the project data as often as users require and then re-generate the Project Web (if

users specify the same Project Name then the new project web will over-write the existing web).

Users can also generate as many separate Projects designs or scenarios as users wish (each with a

unique Project Name) and these will generate separate Project Webs for viewing and discussion.

Finally, users can obtain software and databases to generate highly detailed medium and long-term

business planning analyses and forecasts for company management and investors.

There are diverse utilities, forecasting and modelling tools available for advanced business modelling

and forecasting; and one can use these to produce highly detailed analyses, or specialized business

planning forecasts and documentation, reports, spreadsheets, and other items to assist company

management in their medium and long-term planning activities.

This is especially useful where users are involved in technical/industrial processes, or a complicated

distribution system, or intricate financial operations, or a technologically evolving product, where one

has to coordinate and manage the project elements over an extended geographic space and/or over

a medium or long-term timescale.


196

Methodology For a general description of the methodology used to prepare this database see: Methodology

Presentation The report is delivered as follows:

1. Executive Summary as a PDF file.

2. Report and report Database on DVD (2 copies) or Hard Disk Drive.

3. 1-2 hour Teleconference / Teamviewer presentation of the report findings.

4. Dedicated web site access for the report & databases.

5. All DataGroup / Data Institute products are generated for each client order to ensure that the

client receives the most up-to-date information. This also produces a unique database for the

client; for this reason we archive a copy of the unique database for use if the client needs any

future work from the database.

http://www.datagroup.org/about-delivery.html

6. However, in addition to the report there is a vast amount of data and services which a client

can access. This is done as part of the After-Sales Service.

After-Sales Service & Client Support

There is a 12 months After-Sales Service from date of delivery. See After-Sales Service When you want the database updated then you can simply order an update. When you want more

detailed information on any part of the database then you can order the information you need.

This database has been uniquely generated for each order and includes a 1 year After-Sales Service.

A DataGroup / Data Institute service representative is assigned to each client (see the covering letter

which accompanied your order delivery).

After-Sales Support: [email protected]

All reports, studies and consultancy assignments must inevitably mean that the publishers or

consultants are trying to interpret the needs and expectations of their clients. Unfortunately in most

cases, with most publishers, the clients will not receive all the data they need. This is not the case

with a DataGroup report.

The main problem that DataGroup has to resolve is that the database for each report would, if printed,

be about 20 volumes of 600 pages for each volume. Clearly this amount of information (12,000

http://www.datagroup.org/about-method.html

http://www.datagroup.org/about-delivery.html

http://www.datagroup.org/about-after-sales.html

mailto:[email protected]


197

pages) would be unusable and unwanted by the majority of clients - and indeed the cost would be

twenty times greater.

Thus with After-Sales Services clients have 12 months Support whereby clients can obtain more

information and data on markets, industries, competitors, distribution channels, end users, et al.

These After-Sales Services are supplied Data Institute and DataGroup.

See: http://www.data-institute.org/about-publishers.html and

http://www.data-institute.org/about-faq-datagroup.html

All DataGroup / Data Institute products have a 12 month After-Sales Service and what this means is

that from 12 months after the data of purchase a client can obtain more data or services at a greatly

reduced cost. After-Sales Services are usually provided at 35%-55% of the normal retail costs. This is

because this work is done during off-peak hours.


Costs: The current cost is £75 per hour; this includes all researchers / computer / database access

costs.

The cost of this After-Sales Service is low and provides a highly cost conscious method of acquiring a

vast amount of additional and more detailed information at a relatively low cost. No other Publisher

provides such a service to their clients

Delivery of the results produced is 7-14 days. For more urgent After-Sales Service work the costs

depend on the client’s time frame and the availability of our researchers.

Quotations: We quote client in advance for After-Sales Service work and this quotation states the total

cost of the job, plus the anticipated delivery time.

After-Sales Services are usually provides on DVD, Memory Stick, USB Hard Drive or online.

Real Time Support The After-Sales Service can offer client Real-Time Support. This usually involves using a software

utility called TeamViewer (an installation program can be found in the Toolkit on your DVD or Hard

Disk Drive) which allows the After-Sales Service support staff to directly link to the client’s computer

and work with the users in real time.

Resource Webs -v- Dedicated sites This report includes a dedicated web site which is effectively a dedicated password protected folder

which contains your database. Sometimes however clients also want the data loaded onto a

Resource Webs which will contain more than one database and which will be for the use of their staff

and/or any other persons they may authorise. This is a Resource Web.

http://www.datagroup.org/about-resource-webs.html

The main benefit of these Resource Webs is that the data is available to all the client’s staff and

professional advisors wherever they may be, and also when data is updated or new data is added

then there is a common and know point of access for that data.

http://www.data-institute.org/about-publishers.html

http://www.data-institute.org/about-faq-datagroup.html


http://www.datagroup.org/about-resource-webs.html


198

Resource Webs are maintained for the use of the client for a period of 12 months from the data of the

last data addition or update to that site.

These dedicated web sites are provided as part of the After-Sales Service. We try to make the web

site as visually attractive as possible and for this we simply need the client’s permission to use their

company logo and their own website's colour themes.

Product Level

This is an Entry Level product

This is an entry level product which provides users with corporate, market and commercial

intelligence on the company specified and the markets and industries in the countries listed. The

report analyses the industry and markets with a basic point of reference, namely the Base Reference

Country. The report is formatted to give both a narrative description of the various matters covered as

well as provide readers with the ability to directly use the Chapters (via Microsoft Word or compatible

word processors) to produce their own reports and documentation. Experienced users will be able to

use the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics

- as well as sophisticated business and commercial forecasts and models. The databases are

provided in both Excel spreadsheets and an Access database. Explanatory notes are provided as

word processor documents or in PDF formats.

The Base Reference Country is usually the country of the client; however client can order a database

with another Base Reference Country. If a different Base Reference Country that that provided in this

database is needed, then client can order that as part of the After-Sales Service.

As an entry level product the narrative is necessarily illustrative in its terminology and seeks to

provide a basic degree of business logic and theory which indicates the rational applied in the

forecasting and modelling methodology.

The databases provided are specifically designed to provide users with a uniform and consistent

numeric measure of both (normally) quantifiable values as well as conceptual factors which are

(usually) only capable of qualification. Experienced users will know how to apply forecasting and

modelling software to the numeric data provided to generate highly detailed and discrete business

planning models. The databases provided in this report can be used directly with databases on other

product, markets and industries in other countries. The databases are specifically designed to be

trans-national, currency neutral, inflation and purchasing parity adjusted, product parity and product

equivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked or

merged programmatically in business planning models to provide multi-national and multi-level

analysis.

CURRENCY DATA: The currency figures given in this report are in U.S. Dollars. If the Windows

Regional Settings on your computer is set to a non-U.S. setting then the currency symbol ($) may

appear in the local currency (€, £, ¥, etc.). Either reset your Regional settings, or alternatively read all

currency figures in this report as being U.S. Dollars (US$). There are separate spreadsheets and


199

database tables in the report which specifically give the data in various currencies, namely, Euros,

Yen and Yuan, and these files are clearly marked.

Before using the data provided please read the Database Introduction as well as the Notes and

Definitions links found in each Chapter. There are subtle statistical nuances to some of the

spreadsheets and databases which will help the user to fine-tune their models and forecasts to obtain

maximum effect and greater accuracy. The database flow chart and database description should be

consulted when applying statistical and modelling software.

To assist first time users, there is a Toolkit provided which will enable users to use various software

options to enable the user to gain the maximum benefit from the databases.

Data Product levels

Because of the sheer volume of data potentially available from DataGroup it has been necessary to

create a number of product levels which can provide clients with as little or as much data as they

need.

Entry level

Entry level products provide the most basic degree of information supplied by DataGroup. This

product can be used to build upon for various business forecasting and planning application. Typically

for a World Report this level will produce a database and spreadsheet count of over 13,000 record

sets. Each recordset, if converted into a graphical representation, will itself produce between 1 to 300

individual graphs.

Corporate Modelling level

The Corporate level modelling products provide the tools and information for medium and long term

corporate forecasting and planning. These products are bespoke and are specific to the client

company in question. Typically for a World Report this level will produce a database and spreadsheet

count of over 24,000 record sets. Each recordset, if converted into a graphical representation, will

itself produce between 1 to 450 individual graphs.

Econometric Modelling level

The Econometric level modelling products provide the tools and information for industry level,

national, and international medium and long term forecasting and planning. These products are

bespoke and are specific to the industry and/or geographic reach of the client company in question.

Typically for a World Report this level will produce a database and spreadsheet count of over 39,000

record sets. Each recordset, if converted into a graphical representation, will itself produce between 1

to 550 individual graphs.

Presentation level

The Presentation level products provide the information sought by a client company is a graphical or

audio-visual format which is bespoke for the particular needs and applications of the client company

in question.

Getting Started with the Core Database The database you have is extremely large and in order to orientate yourself it is best to first begin by

navigating through the report to familiarise yourself with the general layout.


200

Go to the Chapters section and click on the Site Map link to see the overall layout of the document.

Click on the Legend link to see the pictorial representations of the types of data.

When you are ready to extract data it is best to begin with the Chapters section as this will give you a

general overview of the data and also it will explain the data and the reasoning behind the document.

Once you are familiar with the type of data involved you can look at the database part of the

document which is contained in the following sections: Databases, Financial, Industry, Markets and

Products.

The database part of the document is provided as both Excel spreadsheets and Access databases.

The Analysis Grids are planning tools and the Planning modules are to enable Business Planning

work at various levels of sophistication. Also in the Planning section you will see how to get additional

data and resources when you need them.

Using the data

If you need to obtain general information or analysis then you can use the Chapters section. You can

also use the Word documents to produce your own reports by editing out what you do not need and

adding your own comments or notations where necessary.

If you intend to use the databases for basic corporate planning purposes then it is best to download

the Excel files and the Access databases onto your local computer for manipulation. The data will run

faster if it is on a local hard disk drive. It is usually easier to use the Excel spreadsheets or Access

tables as a visual representation by charting the data and producing a graphical representation.

In you intend to use the data for intensive corporate planning purposes then download the data onto

your local hard disk drive. This is where the various Scenarios become useful as you can use this

data for modelling your corporate plans.

Toolkit To assist users there is a Toolkit to be found on the DVD and Hard Disk Drive. This Toolkit is divided

into various sections:-

1. Adobe Reader

2. Database Utilities

3. Enterprise Resource Planning

4. Integrated Development Environment

5. If you intend to implement DataGroup and Data Institute databases online (internet or intranet) then an Integrated Development Environment is often the easiest route to data dissemination and data manipulation.

6. Microsoft Office Utilities & Updates

7. OpenOffice

8. US Department of Commerce and US Census Data Tools


201

Because all DataGroup and Data Institute database are directly compatible with U.S.

Government databases (especially the Department of Commerce, US census, NIST,

Treasury, et al) it is sometimes useful for users to use US Government data handling tools to

manage not only US Government data, but also the data provided by DataGroup and Data

Institute. Alternatively, if you are already using this US Government software you can simply

access the DataGroup and Data Institute databases with the same software.

In generate DataGroup and Data Institute databases use the same database parameters,

structures and field names as those found in US Government databases, and thus uses can

correlate and query databases without undue difficulty.

9. Utilities

Proprietary Software packages If you use proprietary corporate planning software then it is easy to use these databases as they are

compatible with the following packages:-

Some Compatible Software products (See the Database Support site for a full list) Project Management Software: 24SevenOffice, Assembla, AtTask, Basecamp, Central Desktop, Cerebro, Clarizen, codeBeamer, Collabtive, Concerto, Contactizer, CredAbility.info, dotProject, Easy Projects .NET, eGroupWare, FastTrack Schedule, Feng Office Community Edition, FogBugz, GanttProject, Gemini, Genius Inside, Glasscubes, Huddle, Hyperoffice, InLoox, JIRA, Journyx, Kayako, KForge, KPlato, Launchpad, LiquidPlanner, LisaProject, MacProject, MantisBT, MatchWare MindView 3 Business, Merlin, MicroPlanner X-Pert, Microsoft Office Project Server, Microsoft Project, Mingle, O3spaces, OmniPlan, Open Workbench, OpenProj, Oracle Project Portfolio Management, Planisware 5, Planner Suite, Pmplus+, Primavera Project Planner, Project KickStart, Project.net, Project-Open, Projectplace, ProjectSpaces, Projektron BCS, PSNext, QdPM, QuickBase, Redmine, Rachota, SAP RPM, Smartsheet, TaskJuggler, Teamcenter, Teamwork, Tenrox, Trac, TrackerSuite.Net, Ubidesk, VPMi, WorkLenz, WorkPLAN Enterprise, workspace.com, WebSPOC, Wrike, Zoho Projects

ERP Packages: Adempiere, BlueErp, Compiere, Dolibarr, Fedena, GNU Enterprise, JFire, Kuali Foundation, LedgerSMB, OFBiz, Openbravo, OpenERP, Opentaps, Postbooks, SQL-Ledger, Tryton, WebERP, 1C:Enterprise, 24SevenOffice Start / Premium / Professional, abas ERP, Accpac, Agresso Business World, AMS Advantage, BatchMaster ERP, Bowen & Groves, CGram Enterprise, Clear Enterprise, Comarch Altum, Compass ERP, Compiere, Comprehensive Patient Administrator, COA Solutions Ltd - Smart Business Suite, Consona Corporation – Intuitive / Made2manage / AXIS / Cimnet / Encompix / DTR, Epicor Enterprise, Global Shop Solutions One-System ERP Solutions, HansaWorld, ERP Adage (Adage), ERP LN (Baan), ERP LX (BPCS) ,ERP SL (SyteLine), ERP Swan (Swan), ERP SX.Enterprise (SX.Enterprise), ERP VE (Visual Enterprise), ERP XA (MAPICS), IFS Applications, JD Edwards EnterpriseOne & JD Edwards World, JustFoodERP.com, kVASy4, Kingdee, Lawson M3 / Movex, Lawson S3, Log-net, Maximo (MRO), Microsoft Dynamics AX, Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics SL, Momentum, MyWorkPLAN, NetSuite, Openda QX, OpenMFG, Oracle e-Business Suite, Paradigm, PeopleSoft, Plex Online, QAD Enterprise Applications, Ramco Enterprise Series 4.x, Ramco e.Applications, Ramco On Demand ERP, MAS 90, MAS 200, MAS 500, Technology One, SAGE ACCPPAC, SAGE Pro ERP, SAGE ERP X3, SAP Business Suite, SAP Business ByDesign, SAP Business One, SAP Business All-in-One, TaskHub, SYSPRO, SYS-APPS, mySAP, Visibility.net, WorkPLAN Enterprise

Enterprise Feedback Management Systems: SynGro, Perseus (Vovici), Clicktools, DatStat, Inquisite, SPSS, FIRM (Confirmit), NetReflector, Allegiance, Enetrix, Satmetrix, RightNow Technologies, Mindshare Technologies, Data Illusion, KeySurvey (WorldAPP), Kinetic Data, CustomerSat


202

(MarketTools), Medallia, Interview SA, Surveynomics, Invoke Solutions, Qualtrics, Fizzback, Grimmersoft, QuestManager, QuestBack, Globalpark, DataCycles, Dub Studios, eLustro, Kinesis Survey Technologies, Knowledge Wave, myK (myKnowledge), mySurveyLab.com, QuickSearch, Ransys, ResponseTek Networks Corp., TalkFreely, XTCO, Zarca


203

About DataGroup

DataGroup was formed in 1974 by a group of management consultants and information technology specialists whom had previous worked with, amongst other organisations, the U.S. Department of Commerce, Bank of America, Chase Econometrics, The Marketing Strategies Institute, the OECD in Paris, and MITI in Tokyo. DataGroup was established in order to develop a systemised, computerised, and uniform methodology to facilitate real world forecasting models for macro-economic, micro-economic, market, product, and industry purposes. For full details of DataGroup’s history please see: About DataGroup

DataGroup Clients DataGroup do not publish a list of current client list due to client confidentiality; however a partial list of client in the period 1975 to 2000 is shown here: DataGroup Client 1975-2000

Published by The DataGroup Stiftung, Vaduz, Liechtenstein. Copyright © by DataGroup Stiftung. All rights reserved. No part of the contents of this document may be reproduced for third party distribution or transmitted to third parties in any form or by any means without the written permission of the publisher. DataGroup publications are available worldwide only through authorized distributors.

All trademarks are recognized and are used as only an identifier and as Fair Comment as allowed in United States copyright law and the decisions of the European Court. Microsoft, Word, Excel, Access, Windows, and associated logos and identifiers are trademarks of Microsoft Corporation. The copyright and trademarks of the U.S. Government Printing Office, Bureau of the Census, U.S. Department of Commerce, U.S. Office of Management and Budget, U.S. General Accounting Office, National Technical Information Service and other U.S. Government Departments and Agencies are recognized. The copyright and trademarks of all publishers and producers of ancillary documentation and software are recognized.

http://www.datagroup.org/about-faq-datagroup.html

http://www.datagroup.org/about-clients.html

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