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Online Internationalisation
Stacey Ross (S1105444)International Fashion Brand Management
MHN520459
April 2015
Overview
Part 1 – Background & Overview
- Company Overview and SWOT Analysis
- Competitor Analysis
- Market Overview
Part 2 – International Fashion Brand Strategy
- Internationalisation
- Market Entry Strategies
- Potential Markets
- Fashion Brand Differentiation
Company Overview Mid-market, local high street retailer
Catering for the real, forty-something woman
2006 – re-branded from Mackays to M&Co; the very first M&Co website was born
Over 250 stores nationwide; expanding overseas through franchising
2012 – first franchise store opened in Dubai Mall
Delivering to 90 countries worldwide via website
(M&Co., 2015)
SWOT Analysis
STRENGTHS
- Clear internationalisation strategy for stores(franchising)
- Accessible – is in fact the largest retailer in most towns
- Scottish heritage
- Delivers to 90 countries worldwide through website
WEAKNESSES
- Lack of region/nation specific websites
- Lack of presence in shopping centres
- Offers only fashion and homeware
OPPORTUNITIES
- Product extension opportunities
- Online expansion to international markets
THREATS
- More established competitors such as M&S,
John Lewis
- Competitors with larger product offerings
- Economic climate
Competitor Analysis
(Retail-business-review.com, 2010).
Market Overview
Primark
New Look
George
Matalan
Peacocks H&M
Marks & Spencer
M&Co
DebenhamsRiver Island
Top Shop
Dorothy Perkins
Next
Fashion
Price
(M&Co – GCU Presentation, 2015)
Market positioning is the act of designing the company’s offering and image so that they occupy a meaningful and distinct competitive position in the target customers’ minds (Kotler and Keller, 2009).
Internationalisation
What is Internationalisation?
Standardisation of products (Levitt, 1983);
Free movement of labour and capital;
Global communication;
Economic, social, political and cultural ties (Chen, 2006);
Growth and development of human co-operation over national and international borders (Boudreaux, 2007)
Routes to Internationalisation
Least expensive/least
control
• Wholesale/Export
• Concessions
Fairly inexpensive, relatively controlled
• E-Commerce
• Franchising/Licensing
More expensive, long term
commitments
• Mergers and Acquisitions
• Joint Venture
Most expensive, offers maximum
control
• Organic Growth
• Flagships (Moore, Doherty & Doyle, 2010)
(De Chernatony, 2010; Keller, 2013).
Market Entry Strategies
In terms of entering a market through online channels, there are perhaps not as many methods as there are offline:
Brand website;
Blogger outreach and engagement;
Social media presence;
Phone/tablet apps
Potential Markets
BRAZIL: Population – Over 202 million
(tradingeconomics.com, 2014); Portuguese is the first language
(Encyclopaedia Britannica, 2015); 107,822,831internet users in 2014
(7% increase on previous year); E-commerce is booming; Growing middle class; 27 hours per month is spent online
FRANCE: Population – 64.6 million
(worldpopulationreview.com, 2014); One of the world’s fashion capitals; France generates most revenue through
M&Co website, after the UK (M&Co –GCU Presentation, 2015);
Almost 70% of French consumers have internet access;
Spent > 51.1billion Euros in 2013; One of the biggest ecommerce
countries in the world (Ecommerce News, 2014);
Close to home
Fashion Brand Differentiation
M&Co should successfully differentiate themselves from competitors as they offer more than just clothing, and have the opportunity to expand product ranges once they are settled in new markets.
M&Co also have the added advantage in that their products are not limited to the ‘real, 40 something’ woman, but can be adopted by females of a younger age.
Summary
M&Co should trial dedicated websites in the countries mentioned (Brazil, France);
Scope to then include blogger engagement as a way of advertising their brand;
Opportunity to create mobile phone/tablet app dependant on uptake of website in foreign markets;
Opportunity to have distribution warehouses abroad
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