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    Why Do Companies Want To Go To Other Countries Outside The Home Market?

    2017/2/20 13:43:00 32

    BosidengBrandClothing

    According to the world clothing shoes and hats net, domestic clothing

    brand

    It is not so easy to open up overseas markets, especially in those European and American countries.

      

    Bosideng

    (03998.HK) closed its exclusive store in London, England.

    Bosideng said that taking into account the economic uncertainties of Britain in the next few years, it chose to close.

    To count the details of China

    Clothes & Accessories

    There are not many enterprises going abroad to open shops, but few have done so.

    Why do companies want to go outside the local market?

    First, the local market is saturated and the competition is too fierce. Therefore, enterprises begin to seek overseas opportunities to increase their income.

    Japan's well-known clothing business fast marketing group (UNIQLO's parent company), Japan's local population and consumption power is so little, in the discovery of the market saturation, the company's sales growth slowed down to go abroad to open shop is imperative.

    Fast selling began in Britain in 2001, and then China, the United States and other European cities began to store.

     Bosideng

    The second is to establish brand image.

    If the tourists of their own country travel abroad to see the flagship store of this brand, there is no doubt that the goodwill of the brand will increase.

    Conversely, when an enterprise advertises in its own country, it can also call its own business involved in many countries, and so on. It is also a manifestation of strength.

    I randomly selected several entrepreneurs who made clothing companies in China to make a small survey. The feedback received is that China's domestic market has been very large. If small and medium-sized enterprises can live healthfully in local development, only a relatively large number of enterprises will want to expand overseas market after they have developed.

    The reasons why these large overseas companies are going to sea are undoubtedly second: the brand image.

    Bosideng chose to open shop in the UK in 2012. It was not casual. It happened that London hosted the Olympic Games in 2012. The company also hoped to display its brand to tourists from all over the world, and at the same time, to promote sales in the domestic market.

    Bosideng has also said to the outside world: "setting up a property in the golden section of the west end of London, plus the Olympic Games in London, will provide the company with the opportunity to publicize visitors to the world and increase the exposure rate of the company."

    But it is never easy for a clothing company to develop in a new market.

    Ryui Masa, founder of fast marketing, described the performance of UNIQLO in the British market as "a terrible start". When he entered the peak of the UK, UNIQLO opened 20 stores, but eventually all of them closed and announced that they had withdrawn from the British market.

    It will return to the British market again in 2004.

    But at the moment, UNIQLO's business in the UK is also small, with only a dozen stores.

    I get a general picture of the market situation from some friends who are familiar with Britain.

    It is not easy for foreign brands to have a foothold in the UK. This long history of the country is proud of its dress and style and is proud of its local brand. If it is a high-ranking brand with high price (which means the price is affordable, the fashion that keeps up with the trend), there are too many local brands. Topshop, NewLook, Next and Primark are cheap and of the local taste.

    So when UNIQLO returned to the UK in the year, it said that it would be understandable to adjust its strategy not only to "cheap but not beautiful" products.

    But to be an upmarket, the arrogant Briton will not buy it.

    Go back to Boston.

    The British flagship store of the company chose to serve middle class men, so pricing can not be cheap.

    The head of the company's London business, as interviewed by our reporter in 2012, said that the price of shirts in the shop ranged from 85 to 100 pounds, and the price of the down coats of different materials ranged from 125 to 400 pounds, and the price of each garment was about 500 to 900 pounds.

    Clothing is limited to production, with a maximum of 50 pieces per piece.

    Boston, a shop opened in London, chose the British design style.

    But at first glance, it will still be strange. On the one hand, Chinese people in the UK are not very likely to choose to buy (taking into consideration the preconceived Psychology). The same price clothes are not as good as buying the local brands in Britain. On the other hand, this price can find many of the same clothing brands in London. The latter is a long history. Why do the locals need to buy a new brand? Besides, the Chinese brand has no additional features. It just tries to make the same style as the British brand.

    To sum up, it is difficult to make overseas markets, especially a market expanding business that is obviously different from that of our country. It is even more difficult to make profits.

    The reasons are complex, for example, enterprises do not find suitable employees in the local market, have no influence and appeal in the new market, and do not do well in the investigation and entry.

    Bosten's failure is not the first nor the last.

    For enterprises, such a business is a test of water, and has little impact on the main business.

    Personally, this investment is not necessarily a loss for Bosideng.

    Bosideng bought this building in 2011, which is now in the doldrums of the British market. From its location, the store has a good location, located in South Morton street, London, facing London's busiest commercial street, Oxford street. It is also the entrance site of Bond Street, which is the first line of brand. It is only 20 meters from the Bond Street subway entrance.

    Now the property in the lot should be rebounded.

    There are two reasons why Bosideng replied to my reasons for closing the store. In addition to the above statement, the second half of the United Kingdom has decided that the shop will be temporarily closed for the purpose of return on investment.

    The company said it did not rule out the return, and only waited for the right time.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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