Several research institutions routinely report on the considerable value of the luxury goods market. The U.S. and China represent two of the most important luxury brand markets in the world. Verdict Research predicted for instance that it would be worth roughly £225(RM1,374.75) billion by 2012 globally by 2012 (Clark, 2011), while Bain & Company (2010) reported that demand for such luxury accessories as handbags and shoes in particular was increasing year after year in China. The United States is the largest luxury market in the world, with Luxury spending more than twice that of second place, Japan. Both Dior and Gucci Group have seen sales dip in Asia in the past years and whilst the growing middle classes across Asia seem intent on spending more of their wealth on high-end goods.
Nevertheless, consumer spending continues to increase. Close to 85% of the population are expats and this has influenced the products on offer in many retail establishments. Demand for luxury products continues to grow based on their popularity amongst Qatari nationals. (Euromonitor) Swot Analysis Strength Considering the preferences of choice of Qatar nation, our strong high end brand and the taste of the Qatari nationals to buy luxury goods as a means of showing social status will strongly act in our favour. At the same time younger people with higher disposable incomes and preference for brands is again a strong point on which we can capitalize on.
Response to Changes in The Fashion Industry. Over the last 20 years, the fashion apparel industry has greatly evolved through its changing dynamics. Through the fading of mass production, modified structural characteristics in the supply chain and the increased number of fashion seasons, the retailers have been forced to desire flexibility in design, quality, delivery and speed to market, and to desire low cost in fashion production. The competitiveness in the industry of fashion have been identified to be marketing and capital investment in addition to speed up design and market. Since the fashion industry is increasingly becoming dynamic and its market becoming so demanding, the key strategy to keep profitable position maintained is through
As underlined by Caniato et al. (2009), the products’ critical success factors, in the luxury market, are ten: premium quality, craftsmanship, exclusivity, brand building, style and design, emotional appeal, country of origin, uniqueness, performance and innovation and lifestyle creation. Other authors, after having classified luxury and high-end fashion company as entities, which follow the strategy of brand equity, consider the successive product’s CSF: name, style, country of production and concordance between brand reputation and uniqueness of the product (Brun et al.
Dubai is the only geographic region that provides hub for the jewellery market. 95% of all jewellery oversubscribed is on top of 21 Karat; the rest is 18 karat. Dubai has over 600 retailers, the densest concentration in the world. Global Country Report on UAE Dubai's Gold Souk has 275-plus retailers in half a square Kilometre area. At any given time over 25 tons of gold is on display in every next shop.
It determines whether a firm has full control over the foreign unit or is sharing control with the partner (Arregle et al, 2006). Additionally, once a firm establishes a mode of entry it is difficult to change it because a change would have long-term consequences for the firm (Brouthers and Hennart, 2007). Modes of entry into international market is the third most researched field in international management (werner, 2002). This demonstrates the importance of choosing the correct entry mode when joining the international business
Industry Dynamics The fashion clothing industry has changed remarkably, mainly with in the last 20 years. The changing aspects of this industry have enforced vendors to low their prices and ﬂexibility in their designs and quality, vital plans are significant to sustain a proﬁtable place in the progressively demanding market. A basic rule of the business is "know your customer." This rule is also very important in fashion industry. It is very important for a fashion designer to know what is in style and he has to update his clothing with that style regularly.
These characteristics, a complicated supply chain and wide availability of data make the industry a suitable avenue for an efficient supply chain. Also the fashion industry has been in a transition during the last 20 years: significant consolidation in retail, with most of the apparel manufacturing operations moving overseas and, in more recent times, increasing use of e-commerce in retail and wholesale trade. Historically, retailers have tried to exploit relationships with suppliers. Bargaining power of buyers is moderate because of the size and concentration of major retailers. To reduce power and you gain customers, retailers seek to differentiate products and to create stronger brands.
The global fashion industry is one of the most important industry sectors in the global economy. It generates up to $2.5 trillion in revenue a year and has over 60 million workers employed around the world. The fashion industry is huge and it has always played a significant role in the world economy. Clothing, shoes and accessories are not only necessities for daily wearing but also a way of expression from an individual’s esthetic concepts, self-identity and social status, to the trend of the world, the era, and the generation. Nowadays, the global fashion industry has rapidly adapted to a new environment, caused by the emergence of fast fashion and advances in communication and digital technologies.
Fashion retailers have the challenge of restoring health to the economy by being more amusing and creative according to Sheridan. Brands such as Omega, Harry Winston, and Balmain have invaded the “Chinese market with storefronts in the Greater China area increasing sales to 35%. Ecommerce has been described as the ‘next China’ for luxury items in terms of opportunity. China is still a leader in the opportunities and knowing the challenges that luxury brands will face.” (Heywood) Mastering the Internet performance will be the key to success in the future for luxury brands. Chinese clientele has already indicated the slow load time; the lack of user friendliness and a difficult navigation is an automatic turn off for a desired shopping experience.