However “Surveys indicate that consumers will accept a higher price for clothing that comes with an ethical guarantee.” With the boycotting of big fast fashion retailers and the “vintage” resurgence, we are now recognizing the impact that clothing can make on society. Companies that practice the ethical manufacturing of their clothing, ensure the workers are in a safe environment and are paid a fair wage. Retailers be accused of exploiting workers and abusing the environment, simply because they follow the fast fashion business model. Fashion is a business and high street retailers need to respond to the needs of their
Price discrimination is a practice of charging different prices to different consumers under the circumstances of keeping the same cost of production. The manufacturers always set the high price in one particular region to gain excess profit because they have the certain ability to monopolize or control consumers’ demand. However, for those markets which have lower demand, manufactures will set a relatively low price to encourage the consumption. Starbucks charges the relatively higher price in Shanghai than in New York and Mumbai to pursue the higher profit. The high price elasticity of demand of Starbucks ' coffee in Shanghai can be one factor and Starbucks also maintain the high price through taking action to influence consumers’ sensitiveness for high prices.
This also improves Chen’s loyalty towards Levendary. DISADVANTAGES: The main disadvantage of this strategy is that the China operations cannot be controlled by Denver head office. Levendary fails in acquiring global recognition for its brand. The core hierarchical structure of approach changes with this strategy. Levendary loses its core values and may become inferior choice to the customers in China.
Due to globalisation, there is an increase in competition, consumers want good price, good product but also associate themselves with socially responsible and ethical organisations. Globalisation has set a standard of business behaviour which all organisaions have to consider if not they risk ending up as Enron, WorldCom or Sunkill (Crowther and Aras, 2008). Overall, what Walmart could do is implement an ethic code which shall respond to the needs of each of its stores regardless of where they are situated. This would help employees in situations whereby making ethical choices are not readily apparent. An integral code of ethics will also reduce subjective and inconsistent management ideals.
Hofstede portraits the Chinese as relatively high in power distance, eager to avoid conflicts, generally collectivistic and usually long-term orientated, the long-term orientated must be mainly because of guanxi. Redding, Seagrave and Hamilton said that the Chinese tend to do business between themselves and use the Bamboo network of Chinese enterprises as an example, intra-cultural relationships acknowledge to outgrowth superior business successes yet there are other authors that consider this to be only a theory and that Chinese actually do not work with other Chinese companies since they are the competition. Business Environment in China The protection of Intellectual property is a very popular problem that China faces due to the amount of people in the country that the government is not able to control, and for companies that operate in a global market the protection of IP is a very important matter, so this may influence in the decisions of companies while considering to enter the Chinese
This seriously resulted in a massive public backlash in China. Stone’s films were stopped in many cinemas, along with her Christian Dior fashion range being removed from many stores. Although Christian Dior is a popular designer brand among many of China’s growing middle class, this nationalist undertone illustrates the mess that can be done to foreign brands if they step out of line. To be particular Chinese nationalism can be a positive factor for Chinese firms when targeting consumers in their domestic market, however, the association with China, or in short ‘Made in China’ label has brought about negative reactions for some consumers in international markets. This is just one of the many issues Chinese firms need to tackle in regards to their internationalization process.
There is a difference in consumption patterns between these two groups. When the average person thinks of China, for example, the first thought that comes to mind is that of the young consumer purchasing trendy products at the mall or at Wal-Mart. There is another consumer that has embraced global consumerism, and that consumer group is those individuals that purchase global luxury brands (Jap, 2010). The purchase of these items is tied in with social status and one’s self concept (or mianzi) (Jap, 2010). One can argue that both types of consumers are important to the global organization that is attempting to promote its products in new markets, and that without this new brand of trendy consumer, it would be more difficult for economies to expand.
UNIQLO is famous for their simple but colourful design, as well as their good quality but affordable price. Also, the technique and functions of their products such as “AIRism” and “Hattech” is another factor contributes to their success. Although there are powerful competitors such as h&m, Zara, UNIQLO has the ability to fight against them as they understand the needs of Asian, the needs of Chinese people, the style and body shape of them as it is an Asian brand. The first step UNIQLO need to do in order to fulfil their goal to be the world leader of fashion retailer is to dominate the Chinese garment market by completing their task of opening 1000 stores in
The reason here is that pioneer traders set up shops there hence lending legitimacy to the location. So if you are a new entrant to the industry, you need to be associated with legitimate locations in order to gain credibility and benefit from the cachet associated with that location. Like wise, the location from which you source your raw materials, products matters. If you need good quality machinery/equipment, the best source to procure them will be Germany and for affordable equipment, you go to China because it has established this reputation over the
• Managerial implications The paper signify that the method is not significant for long term business as their sustainable base. • Conclusion If both ends of seller and consumer understands the market base will helps in long terms. It all been said over by the authors view-point. Article 3: o Review of Literature for article 3 • Purpose of the study Aims to investigate the companies brand name perception over the sportswear market of China • Methodology adopted The created an analysis report over the company belongs to and where the company produces their goods. • Findings Analysis revealed that there is a impact of brand value in China rather than from where it belongs.