Competing on an international basis allows global consumers to be more focused and well informed about the services and products of the companies. Creation of the comprehensive international marketing strategies helps the companies in adapting the changing requirements and trends of the world market quickly. Besides this, the adoption of the global marketing strategy also helps the company in understanding their strengths and weaknesses, while operating in a foreign land. Here, the paper provides knowledge about global marketing through the discussion of real-life example named Woolerina, an Australia based manufacturer of fashion clothing that is going to spread its market in China. Besides the analysis of its business environment, market, competitions and other internal and external factors, the report delivers some strategic market entry or opportunities of the product concepts to their management.
Wollerina is going to spread its market in China and analysis of its macro environmental factors help in counting on its resources for fighting against the adverse situations in the foreign market.
|
Factors |
Descriptions |
|
Political |
· Arising from the new government · New bankruptcy law, labour law and antimonopoly law · Unstable conditions for foreign investors (Speijers et al. 2015) · Government regulations |
|
Economical |
· Sigh rate of the savings · Skilled and abundant labour · More exporting of business · Potential growth of urban areas |
|
Social |
· Huge age distribution and population growth · Consumer lifestyles, education, emigration and religion · Massive development of ecommerce websites (Brown, Waldron & Longworth 2014) · Educational development of the country |
|
Technological |
· Development of the new products · Purchasing mechanisms like extranet and intranet (Li et al. 2017) · Modern production technology · Modern distribution technologies like the internet and mobile telecommunications |
|
Legal |
· China tax regimes |
|
Environmental |
· Sustainable development of the products · Green initiatives (Jones, Heley & Woods 2018) |
Figure 1: PESTLE analysis of the Chinese market
(Source: Jones, Heley & Woods 2018)
While spreading business in China, the company must need to consider the critical factors like attaining of the strategic objectives of the cost reduction, social differentiation and strengthening of the core competencies in business activities business activities and some other areas (Dei Ottati 2017). In another hand, the political instability of the country makes the country unsafe for the foreign investors that need to be managed effectively by the company.
Figure 2: Global wool market
(Source: Wiedemann et al. 2017)
After Australia, China is the largest wool producers of the world, and they mainly use the greasy wools as their raw materials. Australian yarns are more delicate concerning those used in the Chinese clothing industry (Wiedemann et al. 2017). Thus, the growth rate of this company is higher in China as it uses fine Merino wool in their products. On the other hand, as China is a developing country, the company must need to use appropriate pricing strategies for the supply and management of their end products.
Figure 3: Investment in China’s textile industry
(Source: Zhang et al. 2014)
Major competitors of this company will be Spirit co. Ltd. and Huafang Group of China both are famous wool cloth dealers of Australia. As justified by Wang & Xiao (2018), Spirit co. Ltd. occupies the largest sector of Australian woollen market along with Huafang Group of China. The company is holding near about 80% of the above-said market. Now a day, the company also adopts the segmented styled pricing strategies to grab the lower income segment of the society. The company even can manage the balance segments and perceptions of the income strata. Additionally, like Huafang Group of China, this company also has a good employee’ policies for handling their employees through adequate training. On the other hand, both of the companies have good ability tracking their consumers through social media analytics.
Woolerina is the famous Merino fashion clothing house based in Australia; the company is passionate about some things like merino wool of superior quality, slow fashion, and ethics and family. The main aim of this company is to provide the most beautiful, and softest merino clothing brought together by craftsmanship and experience. Their product ranges from tops, bottom, jackets, cardigans, dresses, accessories, vests, a jumper for men, women and children of the society. Main competitive advantages lie in their production methods, unique raw materials and ethics of the company. The company believes in slow fashion movement that helps in saving time and minimising the industrial waste, environmental waste and waste. The company also uses the high quality of merino fibres for their durability and luxuriousness for developing their products (Woolerina.com.au 2018).
Woolerina is the fashion clothing brand based on Australia that is going to spread its operations in China. This clothing brand has some extensive network in Australia and entering into the foreign market demands the analysis of the strengths and weaknesses of the company. Analysis of these factors helps in understanding the company’s resources for minimising the threats in the foreign market. As justified by Barnard (2017), strengths are the factors those companies inherit in the gamut of the operations that can give some upper standards over the competitors. The company has an extensive market leadership that decreases the threats of competition and increases the brand value and consumer base. The company is also famous for segmenting their business market through the penetration strategy (Frost 2018). The company focuses on the wealthy classes as they are stocking the upscale brands, now a day the company is moving towards the segments of the lowered values for maintaining their strong presence in the market. As justified by Sheng-guo et al. (2015), the company operates efficiently in balancing the segments and managing the perceptions of different sections of the income levels. Besides this essential marketing strategy, this posed as a crucial promotional strategy for the company. Additionally, effective employee policies, proper customer tracking and promotional skills expected to make the company popular among the Chinese people.
|
Strengths |
Weaknesses |
|
· Market leadership · Market penetration · Managing perceptions · Employee policies · Effective customer tracking · Good promotional skills |
· Confused positioning · Partiality towards certain markets · Price wars |
|
Opportunities |
Threats |
|
· Focusing on the experiences |
· Highly competitive market · Focusing on the health |
Figure 4: SWOT Analysis of Wollerina
(Source: Sheng-guo et al. 2015)
As justified by Wang & Xiao (2018), among the threats, there are confused positioning and price wars among the highly competitive market are the vital factors that can harm the company’s market operations. The company tries to target various segments of the income strata of the society by developing the same standards products. As described by (), confused segmenting of the market often confused the consumers so that company loses their valuable customer base.
Additionally, the company is accused of favouring the higher income group of the society by providing them with more products, services and attention. Being in a highly competitive market, there is also a presence of price wars with the near competitors and local industries. As described by Dei Ottati (2017), the biggest competitors of this company are Coles, there are also presences of many online retailers like Flipkart, and Amazon those give some threats to the company. Additionally, the sustainable use of the services and products becomes the main concerns of the population. Thus they are more concerned about the products they are using or wearing. On the other hand, the company has some in-store experiences that may help in gaining popularity in the market. The company provides chargeable services like personalised services, shopping assistance based on artificial intelligence, loyalty schemes (personalised) and self-checking out for the people.
After the completion of the analysis, it can be said that the company has a vast possibility of gaining popularity in the Chinese market. However, if the company will not be able to develop products for maximum people from different economic strata, it may face considerable adversities in the developing countries like China. As commented by Ceccagno (2017), being a developing country, the company must need to look after their pricing strategies while operating in China. On the other hand, the company must need to produce organic and sustainable products for maintaining the ecological balances or coping up the changing trends. Thus, the following of these measures or market entry strategies, the company can earn popularity in the Chinese market.
Conclusion
On a conclusion, it can be said that Wollerina has some significant scope of business in China. It also can be said that now a day with the innovation of the modern technologies, spreading of the company internationally becomes more useful at any point in time. The above report demonstrates the in-depth knowledge of global business through real life example like Woolerina. Recently, China is going through the promotion of the rule of, law and after the Cultural Revolution, restricted revolutionary excesses and an official authority have been developed. There are also new promulgations of the new legal bodies in the country that makes the situation unstable. Despite these drawbacks, the company products with fine Merino wools will help the company in flourishing the state. Additionally, it also can be concluded from the above writing is that the company must need to develop the products for every section of the economic strata that will be expected to make famous in the developing countries like China. Moreover, the company also needs to look after their pricing strategies effective marketing of their services and products.
References
Barnard, A. (2017). A Century and a Half of Wool Marketing. Textiles in the Pacific, 1500–1900, 333.
Brown, C. G., Waldron, S. A., & Longworth, J. W. (2014). Drivers and Dynamics of the Chinese Wool Market. In The Political Economy of Agro-Food Markets in China (pp. 210-235). Palgrave Macmillan, London.
Ceccagno, A. (2017). City Making and Global Labor Regimes: Chinese Immigrants and Italy’s Fast Fashion Industry. Springer.
Dei Ottati, G. (2017). Chinese immigrant businesses in the industrial district of Prato and their interpretation. In Chinese Migration and Economic Relations with Europe (pp. 79-105). Routledge.
Frost, L. (2018). Benjamin Mountford. Britain, China, and Colonial Australia. Oxford Historical Monographs. Oxford: Oxford University Press, 2016. Pp. 297. $100.00 (cloth). Journal of British Studies, 57(2), 379-380.
Jones, L., Heley, J., & Woods, M. (2018). Unravelling the global wool assemblage: researching place and production networks in the global countryside. Sociologia Ruralis.
Li, W. R., He, S. G., Liu, C. X., Zhang, X. M., Wang, L. Q., Lin, J. P., … & Liu, M. J. (2017). Ectopic expression of FGF5s induces wool growth in Chinese merino sheep. Gene, 627, 477-483.
Sheng-guo, Z. H. A. I., Liu, Y. A. N. G., Gang, A. N., Hong, Z. H. A. O., & Ji-liang, C. A. O. (2015). Dyeing of anionic modified cotton fabric with natural dyes extracted from berberine. Dyeing & Finishing, 11, 006.
Speijers, J., Stanton, J. H., Naylor, G. R., Ramankutty, P., & Tester, D. (2015). Skin comfort of base layer wool garments. Part 3: The effect of ethnicity on perceptions of comfort using Chinese and Australian wearers. Textile Research Journal, 85(11), 1167-1180.
Wang, J., & Xiao, H. (2018, July). Wool Production’s Quality Control Behavior: An Empirical Study of the Status and Determinants. In IOP Conference Series: Materials Science and Engineering (Vol. 392, No. 6, p. 062171). IOP Publishing.
Wiedemann, S. G., Simmons, A., Watson, K. J., & Biggs, L. (2018). Effect of methodological choice on the estimated impacts of wool production and the significance for LCA-based rating systems. The International Journal of Life Cycle Assessment, 1-8.
Woolerina.com.au (2018) woolerina Retrieved on 13/12/2018 from https://www.woolerina.com.au/pages/about-us
Zhang, B., Wang, L., Luo, L., & King, M. W. (2014). Natural dye extracted from Chinese gall–the application of color and antibacterial activity to wool fabric. Journal of cleaner production, 80, 204-210.
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