Fashion market is a very important market with a turnover of 26 Billion euros. This market is characterized by a steady general turnover over the last 15 years with decreasing average prices. Effectively, prices have decreased contrary to sales. As we are in a consumption society, fashion market has followed the consumer's expectations. Today, a woman prefers buying two cheap tops more than an expensive one. Women are acting like that because of fashion. In the past, a fashion period, a fashion wave lasted five or six years. Today, a fashion period only last few months, that is to say two or three months. This is the reason why consumer is able to buy new clothes every month. Thanks to the average price which has decreased in the past few years and buying clothes every month has become possible. In addition, to attract consumers every month, manufacturers have to be very reactive to meet consumer expectations. In order to propose attractive prices, fashion houses had to reduce their production costs. This motivation drives the manufacturers to become bigger than before, to produce more to decrease the final prices, without decreasing their benefits.
[...] Effectively, Caroll wants to introduce the Chinese middle market with the same range of products. About the Chinese market introduction, we can say that Caroll suffers from some weaknesses. First of all, Caroll hasn't got any experience of the Chinese market. We know that it should be more difficult for a French brand to introduce the Chinese market than the Spanish one. Market rules are totally different and this lack of experience may be a weakness. In addition, Caroll has no special policy for Chinese market . [...]
[...] To analyse the launch of Caroll over the Chinese market, we'll develop the marketing plan of the firm. A SWOT analysis will be relevant to evaluate the strengths and the weaknesses of the firm in the market. We will lay the emphasis on the threats and the opportunities that Caroll have for the future. What's more, we will include some models such as the Boston Box, the Portfolio matrix, etc . In order to begin the demonstration, we will pay attention to the 7 Ps to understand well the position of Caroll's products over the market. [...]
[...] Caroll's SWOT analysis Strengths Weaknesses 282 stores (70 Fierce competition over the implanted out if France) European market turnover increased of in Lack of experience out of 2004 Europe, especially in Asia Caroll is part of No special policy to introduce Vivarte, a very big group the Chinese market (1845 stores in France No networks in China out of France) French leader with 1,8 billion of turnover Very reactive firm Style of the products Quality products Knowledge Specific colors Wide range of products (clothes, watches, belts, optic glasses and sun glasses) Good development policy Opportunities Threats Chinese culture very different from European one China = wide market Communist country billion of potential Low purchasing power of consummers) Chinese A market which is growing very Take care of Chinese copies of quickly products Low competition over the Rise of new competitors over market the Chinese market Opportunity for Caroll to increase its turnover quickly Possibility to open a lot of new retail points Growth of the Chinese middle market Thanks to this SWOT analysis, we understand that Caroll is a very serious fashion house over the French market. [...]
[...] Caroll has foreseen in Chinese market a real opportunity to increase its turnover by increasing the number of its stores. Effectively, if it has become difficult to grow quickly in the national market where the firm is very well implanted, it is should be faster to develop the activity in a country where nothing has been already done. Furthermore, as in Western countries, middle market is growing too in China. Caroll is positioned in this middle market, which is an intermediary market. [...]
[...] So, it's time to study the BCG matrix to understand how positioned fashion houses' products are Boston Consulting group matrix Growth rate High Star Question Mark Cash Cow Dog Low Market shares High We can consider that the star product of this matrix is composed of the new collection launched. Effectively, when a collection is launched on the market, we see in the life product cycle (cf.Clothes collection life cycle) that the growth rate is very important. The new collection is the heart of the fashion houses activity. [...]
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