No Sweat was very pleased with the work that has been finished on the new supplier. In this new case. We will look for a new exporting market for No Sweat and a new distribution channel in this market. Chapter 1: Chapter 2: Chapter 3: Chapter 4: Chapter 5: Chapter 6: Problem statement The approach Country selection Channel selection Conclusion List of sources No Sweat wants to sell clothes on a new market. Saga Chaps has gathered information and made a pre-selection of three interesting markets, namely Belgium, Germany and Denmark.
These three countries offer the biggest potential to start exporting to. This is based on facts and figures about the market, trends and other factors. Each market has its pros and cons. However, the most interesting market is not clear yet. To make the decision, more information and analyses are needed. It is the Job of the students to gather more information and analyze it and then choose the most interesting market for No Sweat. When a country is chosen, the next step is to choose a distribution channel.
Also here Saga Chaps has gathered information about the different distribution channels. Again, the students need to choose the most interesting channel. Approach We made a list of criteria that need to be looked at when deciding which market No Sweat has to choose and which distribution channel. With each criterion we can give the country a certain weight factor so we can see which one will have the highest score in the end. These weight factors are multiplied with the scores we gave each country.
We put these data in an Excel model. We have compared the results of each country with each other. Based on these results, we could decide which market offers the biggest potential to start exporting to and which distribution channel would be the best option for No Sweat. We also compared the outcome of the criteria. Last we an give advice about the best option. A list of criteria was made to choose the best country. We only chose the most important criteria to work with, the less important criteria are left out. 1.
Demand for product/Potential sales With this criterion we measure the demand for product and the potential sales for No Sweat. If a country has a high demand for No Sweat’s clothes, they score high in this criterion. Belgium The share of clothing in consumer spending remains high in Belgium despite the economic downturn. Unsurprisingly, the sales of the sector are driven by women’s clothing. According to the trade press, 48% of the clothing sold the same year was women’s clothing. This represents a steady increase of around 5% per year since 2006.
Although men’s outerwear has the same growth rate during this period, sales of men’s clothing represents 30% of the market while children’s clothing only account for 22%. Germany The overall share of clothing & textile expenses in private German household expenditures has constantly decreased over the last few year, now representing approximately 4 – 5 percent of the total budget. Denmark The disposable income of Danish citizens has increased in recent years, making nonusers more likely to spend a greater proportion of their income on designer clothing, brand-name fashion, and fashion items.
A greater availability of low cost clothing and the higher disposable income has shifted Danish consumers from repairing older clothing items to purchasing more new items. Following the greater trend for men’s cosmetics and fashion, men are also spending a greater proportion of their income on clothing. The Danish are also known to purchase clothes frequently. 2. How recession impacts the market The recession has made quite an impact on all different segments in the economy. With this criterion, we measure how much the recession impacts the clothing markets in each country.
If the recession has had a big impact on the market, we give Despite the current global economic downturn, the apparel retail industry continues to grow at a healthy rate and this, coupled with the absence of switching costs for consumers and great product differentiation, means that rivalry within the industry is no more than moderate. It barely affects the market at all. The recession has had a great impact, the German apparel market was decreasing in cent years despite the fact that it is one of the largest markets in Europe. (Historicalness, 2009).
In the last few years the German apparel market is growing again, though slower than the Belgium and Danish market. Denmark no more than moderate. 3. Fashionable With this criterion we look at the fashionableness of the citizens from the different countries. In this way, we can see in which country costumers will buy a lot of No Sweat’s clothing. If citizens of a country are very fashionable, they get a higher score. Nowadays, basic apparel coming from private labels is worn by Belgian consumers in ambition with branded clothing.
Nowadays, the German retailing market is more focused on the maturated and older people. The Danes are known for being quite fashionable and they purchase new clothes frequently. For every day wear, Danes are casually dressed, but they dress up for special occasions and for going out to restaurants and bars. 4. Ease of access to this market Distribution to a country can be very hard. That is why we also look at this criterion. If it’s easy to distribute to a country, they score higher on this criterion. Very easy. Transportation should be easy since the country isn’t far away from us.