Synopsis


 


Title: An analysis of International Market Expansion of Taiwanese Designer Brands Compared with Intercalation Expansion of a Western Brand.


 


1.0 Introduction:


After years and years of improvement and development, fashion is already became a important factor on our society today. Follow by the wave of globalization, fashion companies to target their brands onto the international market is for definite. “An international perspective on marketing management is critical in the contemporary era of global competition.”(2001).International market is attractive to every single designer, so in the past few years, the number of Taiwanese designer left their Taiwan to another country is getting more and more. But the successful rate is extremely low!


Reviewed on the successful enterprises, we can see that their products are mainly concentrating on the design and quality such as Gucci, LV, Prada ……etc. This brand not only a big player on the international fashion stage, their design also changes the fashion trend on today’s society as well. But how could they manage to do that? How can these brands give such a big effect to the society? These interested to the researchers and new comers. By looking at their business strategy of the successful enterprises, following their detail and idea, researchers and new comers are trying to following the same way along with these successful enterprises to step onto the international fashion stage.


Turning to Taiwanese companies, we found out these business strategies of the successful enterprises does not actually works for everyone, but why?


In this study, I am going to investigate this factor by comparing the business plan of two most successful enterprises from the international market and two un-successful companies from Taiwanese market. And then by taking their advantage and avoiding their disadvantage to found out the main steps to the international fashion market.


1.1            Investigation background and motivation:


The most successful brands on the fashion market today are normally historic brands, they took years and years gain the experience to able to build these image. “Movements are always challenged by counter movements; the familiar and the alien crop up, form a scenario, and together contribute to the drama of the twentieth century.” (2005),  ( 1999). Their images are mostly depended on the year that the enterprise established. And these could be separated in FOUR generation ( 2005;  2006). Enterprise established in different generation, their designing idea and business strategy would be different. The following four generation stated that establishment of different brand and the different effects to these companies, respectively.


l   Hundred Years Brand (1800-1899) :


The brands which established in this generation, their clothes are mostly individually make to individual customer. The main material would be leather; their clothes were mainly hand made with traditional skill. The main market at this time is normally noble or rich man (2002). This traditional hand made skill, cutting and design are directly effect the image of the companies which established at this generation, because there products are mainly concentrate on cutting, their design are more mature and luxury. But at this time companies still hadn’t formed their own brand yet, so each product they made was independent.


l   Historic Brand (1900-1960):


1900-1960 is a very important revolution in fashion history, manufactures started more creative on the design of their clothes. To be standing out at this generation, companies had to create their own product line which called ‘BRAND’, and they were more concentrated on ‘creative design and new era outline’ which called ‘INNOVATION’(2006). For example: In year 1910, CoCo Chanel brought in a new “ideas, experiments, and Clean outs.” The owner and designer of CoCo Chanel “ruthlessly discarded everything which she considered superfluous in order to expose the substance of a garment that modern women could wear.”(2005) In year 1947, Christian Dior brought in ‘New Look’. According to Datamonitor business informationa center stated, “Christian Dior’s success is guaranteed when he ‘propositions’ women with fashions that they cannot refuse. Following years of austere fashion, he presents tightly fitted bodices with are difficult to move in, long, full skirts-or pencil-slim ones-which are utterly unsuitable for work, and accessories that have no function. Dior states simply. “I wanted to make women beautiful again.” And Mary Quant invented “MINI SKIRT”( 2006)……etc. All this new ideas brought fashion market into a new generation. At this time, enterprise were normally operation by designers them or family business.


l   Trendy Brand (1961-1989):


Designer clothes at this generation, their design were mostly related to their own country’s living style. For example; Ralph Lauren represents America, Dolce & Gabanna represents Palermo, and Vivienne Westwood represents UK Punk. In Asia, we has Yohji Yamanoto to represents Far East (2005). Because such of a big competition between brands to brands, most of the companies already targeted their business onto the international market. But to lead them into this procedure, they need a massive amount of investment, and a really complicated retail management system. So designers need to work with a good management system together to able to bring their product to next level.


l   Global Brand (1980-2002):


Since early 90’S, because of the wind of globalization, companies not just looking to expand their business onto the international market, a globalization management system are for definite. So to operating an international brand with designers and management system just not enough, it also needs more investment to able to bring them to globalization, to do that the company must needs a financial support from another enterprise. With this support, to operating their brands on the international market would be a successful target.


 


Figure1.1 International Fashion Brand History Background


Established Years


Terms of Brand


Represent Brand


Manage Method


1800-1899


Hundred years Brand


Hermes, Loewe, Bally, Louis Vuittons, Burberry, Cerruti 1881,Kent& Curwen, Alfred Dunhill


Manage only by designer.


1900-1960


Historic Brand


Chanel, Trussadi, Prada, Salvatore Ferragamo, Lavin, Balenciga, Charles Jourdan, Gucci, Hugo Boss, Fendi, Nina Ricci, Coach Christian Dior, Celine, Emilio, Pucci, Pierre Cardin, MaxMara, Chloe, Givenchy, Missoni, Krizia, Valentino, Yves Saint Laurent


Manage by designer or family business


1961-1989


Trendy Brand


Ralph Lauren, Calvin Klein, Comme des Garcons, Emanuel Ungaro, Helmut Lang, Sonia Rykiel, Alaia, Bill Blass, Issey Miyaky, Yohji Yamanoto, Karl Lagerfeld, Giorgio Armani, Jil Sander, Katharine Hamnett, Escada, Jean Paul Gualtier, Kenzo, Blumarine, Joan& David, Gianni Versace, Gianfranco Ferre, Paul Smith, Romeo Gigli, Vivienne Westwood, Dolce & Gabanna, Kenneth Cole, Moschino, Donna Karan, Tommy Hilfiger, Ann Demenulemeester, Dries Van Norten, Christian Lacroix, Martin Margiela, BCBG


Manage by designer and brand manager.


1980-2006


Global Brand


Include above International fashion brand and the new designer brand such as: Alexander McQueen, Victor & Rolf, Junya Watanabe, Hussein Chalayan, Jeremy Scott, Julien MacDonald, Veronique Branquinho, Emma Cook, Stella MaCartney.


Manage by designer, brand manager and financial corporate organization or companies.


 


 


Reviewing on the Taiwanese market, Taiwanese designers established their own brand since early 80’S. In the study by  (2000) described the early Taiwanese fashion business environment in “Fashion shop management”, ‘At 1950-1960 the fashion market had no development space at all, since the ministry of economic affair and political was still unsettled at this time. But from early 70’S, following the development of the financial market, Taiwanese resident started looking for better quality of live, which directly effected the demand on the fashion market.  Taiwanese fashion companies started to import different fashion products from another country to satisfy their needs. And because of this sudden high volume of market demand, and the potential of the Taiwanese fashion market, foreign enterprise resulted in an idea to establish their own brand. Early 80’S, following the successful of the “Brand” idea, Taiwanese designers invested their own production line and established their own brands as well.’


Speak of Taiwanese domestic designers; the earlier designers who established their brand in Taiwan fashion market were (1980), (1982) and (1978), then, young generation fashion designers were Kevin Lee, Isabelle Wen and Jamei-Chen. Due to the influence for globalization, some of Taiwanese domestic designers try to emerged their market in to worldwide, however, viewing the operation of international fashion brands, the domestic designer brands still have many ways need to improve and learn from outstanding international brands.


 


 


Figure 1.2 the Situation of Taiwan’s Designer Brand onto International Market


Brand


Established year


First Emerging Market


Presentative Situation


Shiatzy Chen


1978


Paris, 1991


First specialist shop open on 2001


Lufong Chih


1982


Shang-hai, 1993


Close the shop and return to Taiwan


Sofhie Hong


1985


Paris, 1996


Developing


Jamei-Chen


1987


New York, 1995


Close the shop and return to Taiwan


Source from :


 


(Two Case Studies form above Brands in Detail would be Work on Dissertation)


Literature Review can focus on the Country of origin Perceptions and relate to Brand Perceptions and Brand image.


 


Look over the figure of Taiwanese Designer operation analysis above, we can discover that the domestic designer brand still not fully-develop their best strategies to entry to the international market. Hence, by investigating their operation methods and logistic from the successful international fashion designer brands separately, we can find out, how the way that they manage the global brand and success elements of marketing rules to help them emerge their market into the other country. This study is aimed to provide the fashion businesses by analyzing and comparing the brand operation strategies among different fashion brands in order to improve the competitive strengths of Taiwanese fashion brands in their international development.


Aim:


1.          Analysis and study the ideal entry mode to the international marketplace


2.          Find out the most effective reasons to the fashion brand during the internationalization and the most effective entry mode.


3.          Find out the focus points and differences on various strategies from the global brands. And the differences of those strategies on different entry modes.  


4.          Understand how international fashion brands adapted themselves to the “globalization” and “localization” issues in transnational operation?


As these results can show the best companies strategies into different international market, it’s also reveal the main factors for those successful international brands manage their brand into worldwide. Moreover, the relevant suggestions are provided to fashion business by analyzing and comparing the brand operation strategies among different fashion brands in order to improve the competitive strengths of Taiwanese fashion business step onto international market.


 


 


 


Objective:


1.      Discuss the different strategies from two foreign companies and two Taiwanese companies.


2.      Compare the differences between these strategies, the advantage and disadvantage.


3.      Discuss for definition, function and authority about Brand and what the Fashion Brand means to nowadays peoples by Literature review.


4.      Discuss the strategies of the internationalization.


5.      Discuss the operation differences between these brands.


 


Methodology


1.            Understand and find out the information of each of the four luxury brand in this study. This information could be found out from their website, annual report or relative magazine interview.


2.            By looking at the annual ranking of the global brand, and compare their up and down, and changes on the business strategy, to find out the advantage and disadvantage on this changes.


3.            Interview with the market manager of these brands, to find out their business strategy. And interview with their branch manager, to find out the market reaction. By comparing this two, I can find out the efficiency of their strategy.


4.            Carry out a questionnaire research, to find out the market response and marketplace of these brands. Compare this questionnaire to their business strategy to find out the effective rate of their strategies.


5.            Compare their strategies and their marketplace to understand the advantage and disadvantage of their strategies, then by taking the advantage and avoiding the disadvantage and concluding the result of the investigation above, to form another basic strategy for the entry mode to the globalization of the fashion market.


6.            Send out the strategy to another companies, collect their advice and idea to test the accuracy of this study.    


 


 


 


 


 



Credit:ivythesis.typepad.com


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