For 2nd PLP I chose to talk about the topic "Entering foreign market" because I actually already done a market study for the group Fauchon who wants to develop new horizon in Hong Kong and entering new foreign market is one of the most interesting part in international business management for me.
I chose to study the case Fauchon for several reasons. The aura of the brand, prestigious products, audacious repositioning, and especially its international expansion, Fauchon is an interesting brand as innovative.
Fauchon is a global luxury gastronomy enterprise, selling brand products in all categories of the food industry. Founded in 1886 in Paris. In 1923, Fauchon extends its stores to 28 place de la Madeleine, and opens a large pastry, bakery and confectionery.
In 1972, FAUCHON introduced its full range of teas in Japan, and is still, the largest importer in Japan among major brands of food and tea.
Why Hong Kong? « Location-specific advantage »
Taking advantage of the growing appetite of Chinese neighbours for premium products, luxury brands are always displayed in Hong Kong where most major European firms multiply store openings. To answer this immoderate love of Chinese and Hong Kong for luxury, new shopping malls very upscale, as "Elements", has opened in Kowloon, Hong Kong neighbourhood with many luxury hotels. The gallery is directly connected by train to Hong Kong airport and a shuttle bus to the Shenzhen, China, a distance of about one hour. Objective: To seduce a part of some 10 million Chinese visitors each year who come to satisfy their shopping needs in the territory ceded to China in 1997 and enjoy low taxes on luxury goods.
The Hong Kong spent more than 2.6 billion U.S. dollars in the purchase of luxury goods in 2009, one of the largest per capita budgets in this sector across Asia, according to official statistics. Main target of brands, Chinese go to Hong Kong and three quarters,...